CUSTOMER PREFERENCE ANALYSIS TOWARDS VISUAL MERCHANDISING

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1 CUSTOMER PREFERENCE ANALYSIS TOWARDS VISUAL MERCHANDISING Ms. Mallika Singh 1, Dr Deepak Shrivastava 2, Dr Yogendra Singh 3 1 Research Scholar, 2 Faculty Reader, Institute of Management Studies, Indore, Madhya Pradesh (India) 3 Faculty, JSS Academy of Technical Education, NOIDA, Uttar Pradesh (India) ABSTRACT The study is aimed to find out impact of visual merchandising on customer preference analysis in malls. This study was based on primary data and which was done through the questioners. Data was collected from 200 customers who are purchasing from Indore Mall. Four hypotheses window display, design layouts, cleanliness of market premises & promotional signage were tested for Z test. We found that window display, design layouts, cleanliness of market premises & promotional signage (independent variables) were significantly associated to Customer preference analysis (dependent variable). Keywords: Cleanliness of Market Premises, Design Layouts, Promotional Signage, Window Display I. INTRODUCTION Visual Merchandising is one of the final stages in the process of setting up of a retail store which customers would then find attractive and appealing. The way a store is presented should follow & reflect the principles that underpin the store s image. A visual merchandiser sets the store and its merchandise in such a way as to reflect the image a store wants to reflect. Visual merchandising is the way in which to display goods for sale in the most attractive manner, with the end purpose of making a sale. If it not sell, it is not visual merchandising.visual merchandising is a commercial art form that enables a retail sales associate to work in all art media to communicate information such a price, promotion, style,newness,use, trend, stock quantities, mood & life style to the customers. While in today s challenging economy, retailers may avoid employing designers/visual merchandisers for the fear of unmanageable costs, in retailing visual merchandisers for the fear of unmanageable costs, in reality, visual merchandisers can help economies by avoiding costly mistakes. Guided by a professional, retailers can eliminate errors, saving time & money. It is important to understand that the visual merchandiser is not there to impose ideas but to help clients articulate their own personal style. II. LITERATURE REVIEW Visual merchandising is the art of implementing product display can draw the customer in, promote a slow moving item, announce a sale, or welcome a season. Visual merchandising is the art & science of displaying merchandise on the shop floor to enable maximum sale. (Swati Bhalla and Anurag 2009). The type of visual merchandising used as (independent variables) in the study are window display, Design Layouts, Promotional signage, mannequin display and Customer Preference Analysis (dependent variables). 150 P a g e

2 2.1 Window Display Window display is the visiting card of a store. Creating beautiful and inspiring windows is a great way to attract customers and draw into the (Swati Balla and Anurag s 2009). 2.2 Store Layout Store layout is one of the Key strategies in its success therefore, a lot of time, effort and manpower goes into its design. Layouts also help retailers understand how much revenue per square foot they are making (Swati Bhalla and Anurag 2009). 2.3 Signage Signs, labels, shelf tags, and other identification sign to provide direction, prices, or information on merchandise or policies is referred as a signage. It helps customer to understand information about offer and promotions (Swati Bhalla and Anurag 2009). 2.4 Mannequin Display A mannequin may be the most valuable asset in a store.a silent salesperson ; it speaks the dearest fashion message on behalf of the store. Stylish plastic, wood, Fiber glass representation of human form used for displays. (Swati Bhalla and Anurag 2009). Many other researchers conduct the research on the visual merchandising some of them were 1. Mehata and Chugan, (2012) has studied the contact of visual merchandising on shopper impulse buying behavior. He took sample size of 84 customers visiting the retail stores of India and found that window display has direct relation with impulse buying. However no significant relation found between form display and impulse buying but floor merchandising shows direct relation. 2. Bhashar& Irshad, (2012) has considered impact of form display, window display, promotional signage and floor merchandising by taking sample size of 250 Indian respondents by applying Pearson Correlation. He came to the conclusion that window display and impulse purchasing are positively correlated. Impulse buying and store display are not correlated. Floor merchandising is also correlated with impulse buying. 3. Sujata et al, (2012) has shown impulse buying as an antecedent to impulse buying. He has taken window display, form display, floor merchandising as independent variables. He has taken sample comprising of both male & female of age applied Pearson Correlation. His conclusion was that there was strong correlation. His conclusion was that there was strong correlation among window display, impulse buying and forum display. Low correlation found between impulse buying & floor merchandising. 4. Vinamra et al, (2012) has studied impact of visual merchandising on consumer behavior towards women s Apparel. His dependent variable was visual merchandising and independent variables were neutral role in influencing the purchase and significant role in influencing the purchase. He took sample size of 150 Indianwomen s who were visiting shopping malls. His findings were that visual merchandising has a very strong impact on customer purchasing behavior. To some extant visual merchandising also leads to impulse buying. 5. Khandai,Bhawana Agrawal and Anjugulla, (2012) has studied the visual merchandising as an antecedent to impulse Buying: In Indian perspective. The primary objective of his research was to examine the relationship between respondent impulse buying behavior and common external factors that triggers impulse 151 P a g e

3 buying. His independent variables were window display, in- store form, mannequin display, floor merchandising and promotional signage and impulse buying behavior. He has taken sample size of 200 from Delhi City. The Pearson correlation test was conducted to see the correlation between the target audience s impulse buying tendency and each of the four types of visual merchandising practices. An important finding of his study was that visual merchandising practices certainly influences respondent s impulse buying behavior. The results proved that there was significant relationships between respondents impulse buying buying behavior and window display and in - store /mannequin display. Even floor merchandising and promotional signage are correlated to impulse buying but the level of correlation is rather low. 6. Mahmood and Ahmadinejad, (2011) has studied the role of store environmental stimulation and situational factors in impulse purchasing. He has taken impulse purchasing, as dependent variable and environment of store, promotions examination of goods and availability of money as independent variables. He took sample of 329 customers visiting shopping malls of Iran and applied variance coefficient as statistical tools. His findings were that environment of the store was significantly correlated visual merchandising is related. 7. Pradeep Randiwela, (2007) has studied the impact of visual merchandising on customer store choice behavior. His dependent variable was store choice behavior and independent variables were lighting, Design Layout, Product Layout, Product Display and cleanliness. He took sample of 200 respondents from Colombo and Suburbs (Shrilanka).Data was collected through questionnaire both descriptive and inferential statistics were used in presenting and analyzing the data. Descriptive tools such as frequency counts, means scores, percentages and standard deviation were calculated for the statements on the questionnaire in order to determine the impact of in store promotions on store choice decisions. In addition, correlation was used to determine the relationship between customers attitude regarding visual merchandising variables and customers store choice behavior. His findings shows that there was significant relationship between visual merchandising and store choice decisions of customers. 8. Jayawardhena, (2011) in a study conducted in Central India, tested a conceptual model of the effects of customer and service orientation (SO) behaviours of individual retail employees on individual customer s perceptions of service encounter quality(seq), Service quality(sq),value, satisfaction, and behavioural intentions (BI).The sample was customers of a supermarket in central India, and they completed questionnaires following mall intercept. To test the hypotheses, structural equation modelling was employed. They found that service and customer orientation (CO) behaviours are positively related to value perceptions and customer satisfaction is positively related to retail custmers B1.However the study found that value is not related to customer satisfaction. 9. Ghosh,Tripathi and Kumar, (2011) in their study conducted in Indian context, attempted to address issues related to store attributes and their relevance in the store format selection. Eleven variables (store attributes) had been identified based on theory and judgment. Factor analysis had yielded three factors: Convenience and Merchandise Mix, Store Atmospherics and services. The factor identified and recommendations made would be of use to retailers in designing their outlets with store attributes that would meet the expectations of shoppers and thus motivate them towards store patronage decisions. 10. Hemalatha, Ravichandran and Lakshmi, (2010) found that there is a dearth of tested instruments which could measure customer- perceived service quality of a retail store in the Indian Context. In order to understand the driving factors of a typical Indian retail customer, the key objective of their study was to empirically test the 152 P a g e

4 service quality dimensions. The study also carried out the gap analysis and identified the areas for improvements in retail service quality. 11. Chakraborty, (2010) in a study conducted in Hyderabad, India identified the driving shopping motives of Indian consumer for Discount store formats. Factor analysis extracted three shopping motives, two of which related to hedonic shopping motive and one to utilitarian. The factors were named as diversion, socialization and utilitarian. Other three dimensions of the study were store attributes, shopping outcomes, and shopping perceived cost. Under each dimension, factors related to Discount store were identified. The identified factors could be the key for discount stores for understanding their shoppers. 12. Choudhary and Sharma, (2009) conducted a study in Chandigarh Tri city(chandigarh and its satellite cities of Mohali and Panckula), keeping in view the dynamically growing organized retail in the region. The data of 200 retailers for the study covered time frame from the year 2007 to 2008.After an extensive literature review it was pertinent that size of retail stores. An empirical analysis was conducted using chi square test of independence to understand the role and contribution of type of retail formats on operational efficiency and to examine the impact of location on the same. It was concluded from the data analysis that there was significant influence of format of retail stores and location on the operational efficiency. However, the degree of association was found to be low. III. Research Objectives and Design 3.1 Research Objective i). To find out the influence of window display on customer preference. ii). To examine the impact of Design Layouts on consumer s store preference. iii). To evaluate the relative importance of cleanliness of market premises on customer s preference. iv). To find out the influence of promotional signage on customer preference. 3.2 Research Hypotheses In this study, customer preference analysis serving as a shopper characteristic and visual Merchandising serving as an external cue is determined to be variables. Therefore, hypotheses were Developed to investigate relationships between customers tendency to purchase towards Visual Merchandising. Two hypotheses were tested in this study: Null Hpotheses: H0 i). H 0: There is no influence of window display on customer preference. ii). H 0: There is no impact of Design Layouts on customers store preference. iii). H 0: There is no impact of relative importance of cleanliness of market premises on \ customer preference. iv). H 0: There is no influence of promotional signage on customer preference Alternate Hypotheses: H1 i). H 1: There is a influence of window display on customer preference. ii). H 1: There is a impact of Design Layouts on customers store preference. iii). H 1 : There is a impact of relative importance of cleanliness of market premises on customer preference. iv). H 1 : There is a influence of promotional signage on customer preference. 153 P a g e

5 3.3 Types of Research The study will be described as Descriptive studies attempt to determine the frequency with which something occurs or the relationship between two phenomena. As a descriptive research, the study will deal with the variables affecting the customer preference process via visual merchandising. 3.4 Sample Composition In this case a random sample of 200 respondents which are from different areas like Govt.Service, Private Service, House Wife, Shop Owner, Business, Teacher & student is taken. 3.5 Area It is proposed to conduct research in Indore City. 3.6 Respondents Govt. Service, Private Service, House Wife, Shop Owner, Business, Teacher & student. 3.7 Sample Size A sample of 200 respondents was chosen through random sampling techniques. The Sample group for this research survey was selected from consumers at the Indore City. 3.8 Data Collection As a matter of fact, this study is almost an empirical one. So, as far as possible attempt was made to gather primary data. In that context, a detailed questionnaire was administrated. Questionnaire is the tools which I have adopted to complete this research work. Questionnaire: - The questionnaire is the most common instrument used in collecting primary data. As the name Suggests, it involves data collection by asking questions to people who have desired information about the malls. The questions were framed systematically to enable the researcher to obtain the information pertaining to research Objectives. Mainly multiple choice, rating, ranking & checklist questions were asked which were carefully Developed, and tested before they were administered on a large scale. Respondent s opinions, feelings & Preferences towards visual merchandising in malls reflected by the responses they gave to the questions asked. This method is more suitable as it is free from any bias and the respondents fill them up without any interference of the researcher. The data was collected through structured questionnaire. A sample size of 200 respondents was chosen through random sampling techniques. The Questionnaire was used as the respondents had to give a specific Answer to the questions. This also made it easier for the respondents to give their opinion without too much time. 3.9 Secondary Data Secondary data for conceptualization and operationalization of the matters and other purposes were also utilized through textbooks, articles of journals and web sites etc. The secondary data of the study will be based on the available literature in different text books of Visual merchandising & Retailing. I have also taken data from articles of journals and websites. 154 P a g e

6 3.10 Tools used for Data Analysis Methods In this study Hypotheses were developed to investigate relationship between customer tendency to purchase on preference analysis and seven types of visual merchandising :- Window display, in-store form/mannequin display, product display, music played in the store, promotional signage, design layout & cleanliness of relative importance of market premises. IV. DATA ANALYSIS METHOD 4.1 Test of Significance After collecting necessary information, various data were analyzed to meet the objectives of the study. To meet the objectives of the study some relevant hypothesis were set and later on the test for significance was applied to scientifically prove the objectives. I have tested the entire hypothesis using Z test as I have selected large samples To find Out the Influence of Window Display on Customer Preference Q. I tend to enter a store when I am attracted by i). An eye-catching window display ( ) ii). Interesting promotional offer ( ) iii). Flat Discount ( ) iv). New Arrivals ( ) v). Any other (please specify) Response No Of Customer An eye- catching window display 80 Interesting promotional offer 30 Flat Discount 70 New Arrivals 20 Any Other (please specify) 0 Data Information :- P 0 = 50/100=0.5 P= 80/100= 0.4 n= sample size = 200 H 0 : P H 1 : P 0 > 0.4 Test Statistic :- Z= 2.82 One tailed Test :- H 0: P i.e there is no influence of window display on customer preference. H 1: P 0 > 0.5 i.e there is influence of window display on customer preference. 155 P a g e

7 2.82 > 1.64 ( One tail) Decision : As [z] > 1.64, we reject H 0 & accept H 1 at 5 % level of significance. Therefore there is influence of window display on customer s preference To examine the impact of Design Layouts on Consumers Store Preference Q. How important is the layout of the store while shopping? i). Not at all important ( ) ii). Low important ( ) iii). Slightly important ( ) iv). Important ( ) v). Very important ( ) Response No Of Customer Not at all important 0 Low Important 0 Slightly Important 0 Important 90 Very Important 110 P0: Hypothetical population proportion As out of a sample of 200,110 say layout is very important and the remaining 90 say it is important, the conclusion is that layout is considerably important for customers while shopping To Evaluate the Relative Importance of Cleanliness of Market Premises on Customer s Preference Q. I feel to enter a store when --- i). I see cleanliness of a store ( ) ii). Good Lighting ( ) iii). Availability of Reliable product ( ) iv). Environmental Friendly ( ) v). Good Colour display ( ) Response No Of Customer I see cleanliness of a store 90 Good Lighting 10 Availability of Reliable Product 50 Environment Friendly 30 Good Color display 20 H 0: P i.e there is no impact of relative importance of cleanliness of market premises on customers preference. H 1: P 0 > 0.5 i.e there is an impact of relative importance of cleanliness of market premises on customers preference. Data Information:- P 0 = 50/100=0.5 P= 74/200= 0.37 n= sample size = P a g e

8 Test Statistic :- Z = >1.64 Decision : As [z] > 1.64, we reject H 0 & accept H 1 at 5 % level of significance therefore there is an impact of relative importance of cleanliness of market premises on customer s preference To find Out the Influence of Promotional Signage on Customer Preference Q. When I see an interesting promotional offer (reduced price, sales promotion etc.) In stores signs, I tend to shop. i). Never ( ) ii). Sometimes ( ) iii). Not Necessary ( ) iv). Frequently ( ) v). Always ( ) Response No Of Customer 1) Never 10 2) Sometimes 30 3) Not Necessary 20 4) Frequently 60 5) Always 80 H 0: P i.e there is no impact of relative importance of cleanliness of market premises on customers preference. H 1: P 0 > 0.5 i.e. There is an impact of relative importance of cleanliness of market premises on customer s preference. Data Information:- P 0 = 50/100=0.5 P= 74/200= 0.37 n= sample size = 200 Test Statistic:- Z = >1.64 Decision: As [z] > 1.64, we reject H 0 & accept H 1 at 5 % level of significance therefore there is an impact of relative importance of cleanliness of market premises on customer s preference. V. FINDINGS Found that window display, design layouts, cleanliness of market premises & promotional signage (independent variables) were significantly associated to customer preference analysis (dependent variables). One feels enter a 157 P a g e

9 store where it is clean because of cleanliness. Signs in the store are very informative while shopping in the malls. Layout of the store is very important while shopping. A customer attracted by an eye catching window display. VI. RECOMMENDATION 1. The background music encourage customers to spend extra time in malls, malls should have better light music to have friendly environment while shopping. 2. A person attracted by eye catching window display therefore Company should improve window display by better color, better light, better display of products. 3. Mall should frequently cleaned better dustbin facility at short distance. 4. Company should have that kind of layout where customer can move inside the store. Conveniently there can be better space while shopping. 5. In mall sign should be clear while shopping. Such as floor sign, section sign & item sign etc. VII. CONCLUSION We can conclude that the above suggestions and findings are a vital part for a friendly and convenient atmosphere inside a mall. This will lead people to admire their shopping experience. This will be beneficial to both the malls and the customers in producing a friendly relation. This will also lead to the improvement of malls and their prospects. VIII. AREA FOR FURTHER RESEARCH This study emphasizes the need of future researchers to pay more attention on this field. This is an interesting field for researchers who are interested in conducting studies relating this subject. Throughout this study it was noted that the majority of researchers have not made considerable attempt to carry out such studies on this matter in Indian market. This study did not examine other factors affecting to the store choice decisions. Further research can be made on the impact of supermarket location, car-parking facilities, customer services, brand names associated with store choice decisions of customers in India. REFERENCES Journal Papers 1. P,Chugan, P.K(2012),Visual merchandising: Impact on Consumer behavior. Global business & Technology Association,p.p ,New York USA. 2. Bashar,A,Amed,1.(2012).Visual merchandising and consumer impulse buying behavior : An Empirical study of Delhi NCR. Internal Journal of Retail Management & Research, Vol.2,ISSN Sujataetal (2012) Visual merchandising as an entecedent to impulse buying : An Indian perspective International Journal of Business & Management studies, ISSN: : 1(1): Vinamra at-al (2012) Impact of Visual Merchandising on consumer behavior towards womens apparel. International Journal of Research in Management, Issue2, Vol-5,ISSN Khandai,s, Agrawal,B,Gulla, A.(2012).Visual merchandising as an antecedent to impulse buying: An Indian perceptive : International Journal of Research in Management, Issue-2,Vol.5,ISSN P a g e

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