ROLE OF VISUAL MERCHANDISE IN RETAILING OF SUPERMARKETS IN CHENNAI

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1 ROLE OF VISUAL MERCHANDISE IN RETAILING OF SUPERMARKETS IN CHENNAI DR.S.MEENAKUMARI AP(SL.G ), DEPARTMENT OF MANAGEMENT STUDIES, EASWARI ENGINEERING COLLEGE ABSTRACT A distinctive retaliating needs to improve its image in the long run. 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 customer. Visual merchandising is a major factor often overlooked in the success or failure of a retail store. It is second only to effective customer relations. 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. Visual Merchandise includes both exterior and interior atmospheric of a Retail outlet. In this competitive world, retailers offer similar products can differentiate themselves by the usage of Visual Merchandise.This Research attempts to find out the role of visual merchandise on Retailing amoung supermarkets in Chennai city. The components of visual merchandise were analyzed in this study to findout the impact on purchase decision in supermarket. A sample of 105 was collected. Promotional signage and floor space plays important role in buyer s decision. KEY WORDS: Buying Behaviour,Marquee, Signage,Visual Merchandise,Window display. 1. INTRODUCTION The Retaling sector is one of the dynamic sector amoung the service sectors. The GDP of retailing is increasing at increasing phase. Supermarket is one among the retail outlet which has increasing demand in the market. In today s fierce competitive world where there is similarity of merchandise offered by the retailers especially Supermarkets, it is necessary to concentrate on the virtual merchandise. Visual Merchandise is means of pulling the customer towards the retail outlet. 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 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. Many researches were carried to identify and prove the linkage between Visual Merchandise and Buying Behaviour. Researchers found that impulse buyers usually do not set out with the specific purpose of visiting a certain store and purchasing a certain item; the behavior occurs after experiencing an urge to buy (Beatty & Ferrell, 1998), and such behaviors 120

2 are influenced by internal states and environmental/external factors.research findings suggest that impulse buying accounts for substantial sales across a broad range of product categories (Bellenger, Robertson & Hirschman, 1978; Cobb & Hoyer, 1986; Han, Morgan, Kotsiopulos, & Kang-Park, 1991; Kollat & Willet, 1967; Rook & Fish.er, 1995; Weinberg & Gottwald, 1982). Retailers can help customers to find the right products through focused merchandising, intelligent store design and layout, and other visual merchandising practices, such as product displays, packaging, and signage(abrams, 1996; Baker, Grewal & Levy, 1992). 2. VISUAL MERCHANDISE Visual merchandising, or visual presentation, is the means to communicate a store/company s fashion value and quality image to prospective customers. 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 (Frings, 1999, p. 347). Therefore, each store/company tries to build and enhance its image and concept through visual presentations, which appeal to shoppers and ultimately transform them into customers by building brand loyalty and encouraging customers buying behaviors. Visual Merchandise consists of Exterior and Interior element. 2.1MARQUEE The Exterior signs consist off premises sign which consists of following Marquee This special type of sign is used to display the name of a store. 2.2BANNERS Banners are used increasingly as an inexpensive but colorful, eye-catching means of promotion. 2.3 WALKS AND ENTRY Entrances that allow shoppers to come into a store without being aware of their entering, is also becoming more popular. Cluttered entryway causes shoppers to indefinitely postpone entering a store, while an attractive, well designed entrance is inviting to the customer. 2.4 LANDSCAPING Landscaping should lead the customer s eye to the focal point using color and texture to provide contrast and harmony. 2.5 WINDOW DISPLAYS Special emphasis should be placed on a store s window displays because they are the information link to the potential customer. Window displays can be as important,if not more 121

3 important, than advertising. As many as one in every four sales could be the result of a good window display. 2.6 INTERIOR PRESENTATION Selling space is the most important part of a store and therefore, efforts to utilize each square foot will help to maximize sales. One proven way to do this is through interior displays that effectively show merchandise to the customer. 2.7 COLOUR Color contributes significantly to people s impression of a display, as well as a store s overall appearance. Color in a display can catch the eye and make people pause and look. 2.8 LIGHTING Lighting is essential in calling attention to merchandise in a display. A shopper s eye is drawn automatically to the brightest item or area. Lighting treatment may be used to draw attention to part of the display area, a specific item in the display, or to coordinate parts of the total display area. 2.9 PROPS A prop is something used with a product in a display that clarifies the function of the merchandise being sold or the story being told FIXTURE DISPLAY Goods can be effectively displayed on a variety of fixtures such as gondolas, tables, cubes, mannequins, waterfalls and other racks, display cases, and manufacturer point-of-purchase display 3. REVIEW OF LITERATURE Lots of rsearches were carried out on the shopping behavior at retail outlet.retail store elements such as colour, 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). The physical in store environment has been examined in relation to various elements, for example: orienting factors (Davies and Ward, 2002); signage (Bitner, 1992); Spatial factors and ambient conditions (Davies and Ward, 2002), which Kotler termed atmospherics. The work regarding physicality of in-store environment focuses on the communication of elements through cues and stimuli that the consumer digests through a number of sensory modalities (visual, aural, olfactory, haptic and taste). Therefore, all literature 122

4 commonly recognized as in-store environment depends on visual merchandising and other in store promotions.visual simulation and communication have long been considered important aspect of retailing by practitioners and academic alike (McGoldrick, 1990,2002). This 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 (Wolters and White, 1987, p.238). 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. In this context, it will be affecting to a positive psychological or behavioral outcome, ultimately leading to purchase. The shopping experience, as created by the store environment, has been found to play an important role in building store patronage. Along with the merchandise, it triggered affective reaction among shoppers (Baker et al., 1992). It also contributes to creating store patronage intentions (Baker et al., 2002) and purchase. 4. SIGNIFICANCE OF THE STUDY With increasing competition,retailers are striving to make their store attractive to their target market. The merchandise offered by retailers are found to be similar. As the merchandise offered cannot be differentiated, the retailers try to differentiate and mange the competition by Visual Merchandise. The usage of visual merchandise always improves the image and sale of a retail outlet. However there are only few researches done in this aspect. This research attempts to findout the preferred visual merchandise in supermarkets and the impact of visual merchandise on sales. Fig: 1 A MODEL OF BUYING BEHAVIOUR PROMOTIONAL SIGNAGE ENTRANCE WINDOW DISPLAY PURCHASE DECISION INTERIOR FIXTURES FLOOR SPACE 123

5 5. OBJECTIVES AND METHODOLOGY This research aims to identify role and effect of visual merchandise on Purchase decision in Supermarkets in Chennai city. The Study also attempts to find out the impact of Visual Merchandise on Impulse Buying Behaviour. A descriptive research is used. Non probability judgment sampling is used to identify the respondents. Sample size consists of 105. A structured Questionnaire was employed. The questions are mostly closed. This kind of questions because they have more recognised advantages, i.e. they ensure comparable answers given that they vary little, provide respondents with an acknowledgeable task, are easier to answer and also because they offer more easily examinable,reliable, and statistically treatable answers.questionnaire consists of likert scale. 6. LIMITATION The sample was geographically limited and the age range was narrow. Data collected in other areas may produce different results. The survey asked participants to answer the questions based on their recent buying experiences as long as they were aware of their behavior and influences. However, the qualitative research methods may bring different results. 7. RESULTS AND DISCUSSION In order to conceptualise the respondents profile is analysed. The respondents information about their age,gender,occupation and income were collected. This information will help the study to identify characteristics of the people who generally visit the supermarket. TABLE NO:1 RESPONDENT S PROFILE S.No Respondents characteristics Respondents ( in percentage) 1 Income/month Lessthan Rs 25, Rs 25,000-Rs50, Morethan Rs 50, Gender Male 43 Female Occupation Professional 23 Public Sector 14 Private Sector 36 Others Age Less than Morethan

6 Amoung the samples,45% respondents have an income level of Rs.25,000 to Rs 50,000.Majority (57%) of respondents who visits the supermarket are Female who fall in the agegroup of 20 to 40 years. Majority of the respondents are from Private organization followed by Other category which includes housewives, retired people and students. Responses were measured using a five-point Likert scale, which ranged from Strongly Disagree =1 to Strongly agree =5.was used to measure each variable.participants were asked to circle the number that best described their response The mean of which were calculated. TABLE NO :2 OPINION ON VISUAL MERCHANDISE S.No Parameters Mean value 1. I enter a store when the entrance is not cluttered I get influence to buy more when I see the promotional signage I visit store when there is an attractive window display I get attracted towards the display of various merchandise in supermarket I purchase in supermarket where floor space is sufficient to walk 4.5 around. 6 Colours and Lighting in Supermarket is Important Proper Usage of Fixtures in Supermarket is essential I desire to buy by Interior Decoration 3.2 The research considered some of the factors namely Entrance, Promotional signage,window display, Space, colour,lighting etc of Visual Merchandise that influence the purchase of various merchandise in supermarkets. The factors were averaged to find out its impact on purchase. Most of the factors of visual Merchandise has important role in purchase behavior. Amoung them,the Promotional Signage in the supermarket has high impact in the purchase. This is followed by floor space inside the supermarket, Entrance of Supermarket,and Fixtures. The Promotional signage that are found inside and outside the premises of Supermarket plays vital role in influencing the consumer to make purchase. As the major visitors of supermarket being Female consumers Supermarket is one the retailing which has got various merchandise.this study tried to identify the association between different products and components of Visual Merchandise in making purchase decision. TABLE NO :3 ROLE OF VISUAL MERCHANDISE ON VARIOUS PRODUCTS S.No Products Component of Visual Respondents Merchandise (in Percentage ) 1 Vegetables Promotioanl Signage 75 2 Fruits Promotional Signage 64 3 Provisional Items Promotional Signage 59 4 Personal Care Products Floor Space 59 5 Homecare Product Floor Space 63 6 Fresh Food Entrance

7 The Merchandise in the supermarket was categoriesed into Vegetables, Fruits, Provisional items, Homecare products, Personal care products and fresh foods. Fresh Foods include milk,bread,cake,flour etc. The component for visual merchandise used in this study includes window display, promotional signage, floor space, fixtures, lighting and colours, interior decoration etc. The impact of purchase decision by components of visual merchandise on different products of supermarket was found. It is stated from the study that Promotional signage ( for example 20% discount, buy one get one free etc )has high impact in purchase of Vegetables, fruits and provisional products. Respondents attempts to buy more of Personal care products and Household care products only when they have sufficient floor space to walk around and see those products. Regarding the fresh foods, respondents are influenced when it is places in the entrance of the shop. 8. RECOMMENDATION The study helped to come out with few useful recommendation based on the primary data collection and observation carried out during data collection Spaces between shells (Passage), cashier counters layouts, height of shells, no. of Gondola, number of impulse counters, sanitary facilities, height of roof are key variables of design layout that helps to make customer relaxation, convenience to selection of products, reduce average waiting time and encourage the impulse purchasing etc. Majority of customers respond to the lighting more positively. They specially mentioned that 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. Most of customers are willing to purchase products from supper markets from 6.00p.m. to 9.00p.m. in weekdays and 10.00a.m. to 8.00p.m. in weekends. Therefore, managers can pay special attention to make attractive environment in the supermarket premises and make action to control the rush condition. Visual merchandising is the most important variable in in-store environment among the tested variables. It can significantly influence on consumer s store choice decisions. Therefore, application of more attractive visual merchandising materials in their promotions will help to obtain better results. The lighting, Design layout and cleanliness are the key elements of visual merchandizing programs other than product display. 9. CONCLUSION Visual Merchandise have high impact on Consumer Buying behavior in Supermarktes. Most of consumers are influenced of Visual Merchandise namely Promotional Signage, Floor space, entrance of the outlet and fixtures used for different merchandise in supermarket. It is found from the study that the supermarkets have more women visitors than men. Women consumers are more influenced by the Visual Merchandise of the Supermarket. The Retailers must arrange their products logically and grouping of must done for a category so that a product of one type, brand, pack etc are found within the category.visual Merchandise do have impact 126

8 on Purchase decision. It is recommended that supermarket must take due care in designing and developing their Visual Merchandise. REFERENCE 1. Beatty, S.E. & Ferrell, M.E. (1998). Impulse buying: Modeling its precursors. Journal of Retailing, 74 (2), Baker, J., Grewal, D. & Levy, M. (1992). An experimental approach to making retail store environmental decisions. Journal of Retailing, 68 (4), Belk, 3. Bellenger, D.N., Robertson, D.H. & Hirschman, E.C. (1978). Impulse buying varies byproduct. Journal of Advertising Research, 18, Bitner, M.J. (1992). Services capes: the impact of physical surroundings on customers and employees. Journal of Marketing, Vol.56, Davis, B. and Ward, P. (2002). Managing Retail Consumption.Wiley, London. 6. Frings, G.S., (1999). Fashion: From concept to customer (6th ed). Upper Saddle River, New Jersey: Prentice-Hall. 7. Kollat, D.T. & Willett, R.P. (1967). Consumer impulse purchasing behavior. Journal of Marketing Research, 4 (February), Kotler, P. ( ). Atmospherics as a marketing tool. Journal of retailing, 49 (Winter), Kunkel, J.H., & Berry, L.L. (1968). A behavioral concept of retail images, Journal of Marketing, 32 (4) Marsh, H. (1999). Pop Stars of the Retail World. Marketing, January, pp McGoldrick, P. (1990). Retail Marketing, Maidenhead.: McGraw-Hill. 12. McGoldrick, P. (2002). Retail Marketing (2 nd Edition), Maidenhead: McGraw-Hill. 13. Walters, D and White, D.( 1987.). Retail Marketing Management, Basingstock: Macmillan Press, 14. Weinberg, P. & Gottwald, W. (1982). Impulsive consumer buying as a result of emotions.journal of Business Research. 15. Welles, G. (1986). We're in the habit of impulsive buying, USA Today, May 21,