Effect of Visual Merchandising On Buying Behaviour of Customers

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 dont 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 Chauhan
Monika
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 consumers 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 Acknowledgements Executive Summary Table of Contents List of Exhibits List of Figures 1 1.1 1.2 INTRODUCTION Background Visual Merchandising
Title
Page No. i ii iii-v vi-viii ix 1-6 1 1-5 2-3 3-4 4-5 5-6 6 7-13 7 7 7-8 8 8 9 9-13 10 10-11 Page No. 11-13
1.2.1 Role of Visual Merchandising 1.2.2 Tools of Visual Merchandising 1.2.3 Visual Merchandising: Current Trend and Future Prospects 1.3 1.4 2 2.1 Problem Statement Objectives COMPANY PROFILE Background 2.1.1 Group Vision 2.1.2 Group Mission 2.1.3 Corporate Statement 2.2 2.3 2.4 Future Retail Pantaloon Retail India Limited Big Bazaar 2.4.1 Product Range in Big Bazaar 2.4.2 Significant Features of Big Bazaar S. No 2.4.3 Timelines Title
3 4 4.1 4.2 4.3
REVIEW OF LITERATURE RESEARCH METHODOLOGY Research Design Information Required Data Source 4.3.1 Secondary Data 4.3.2 Primary Data
14-16 17-20 17 17 17-18 17 18 18 18-19 18 18 19 19 19 19-20 20 20 21-52 21-25 21-25
4.4 4.5
Area of Study Sampling Plan 4.5.1 Sampling Frame 4.5.2 Sampling Unit 4.5.3 Sample Size 4.5.4 Sampling Technique
4.6 4.7 4.8 4.9 5 5.1
Research Instrument Data Analysis Limitations of Study Duration of Study RESULTS AND DISCUSSION Demographic Variable 5.1.1 Customers Status
S. No 5.2 5.3 Behavioural Variable Whispering Window
Title
Page No. 26-46 47
5.4
Visual Merchandising at Big Bazaar 5.4.1 Interior Design 5.4.2 Exterior Design
47-49 47-48 48-49 49-52
s5.5
Proposed Model and Suggestions to Increase Footfall and Consequently Conversion Rate in the Store using Visual Merchandising 5.5.1 Key To Symbols
53 54-55 56 57-58 x-xiv
6 7 8
CONCLUSION SUGGESTIONS Bibliography Annexure Vita
LIST OF EXHIBITS
S. No 1.
Exhibit No. Exhibit 5.1
Title Percentage of Male and Female Customers Visiting Big Bazaar Comparison of Age of Customers Visiting Big Bazaar
Page No. 22
2.
Exhibit 5.2
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. 11.
Exhibit 5.9 Exhibit 5.10
Mode of Purchase Percentage of Monthly Income Spent on Total Household Shopping
28 29
12.
Exhibit 5.11
Percentage of Income Spent on Purchase of Apparels
29
S. No 13. 14. 15.
Exhibit No. Exhibit 5.12 Exhibit 5.13 Exhibit 5.14
Title Reasons for Visiting an Organized Retail Outlet Factors Affecting Purchase of Apparels Percentage of Customers Paying Attention to Displays and Signage Percentage of Customers who get Help from Displays and Signage
Page No. 30 31 32
16.
Exhibit 5.15
32
17. 18.
Percentage of Customers who Try New Apparels Percentage of Customers who Feel that Displays Attract More Attention
33 34
19. 20.
Reasons for Choosing a Particular Store Relationship of Color, Lighting, Ambience and Attractive Visuals with Time Spent in Store Effect of Good Interiors and Display on Buying Behavior Percentage of Customers who Ask for
35 36
21.
Exhibit 5.20
36
22.
Exhibit 5.21
37
Availability of Product
23. 24.
Comparison of Method of Buying Apparels Connection of Visual Merchandising and Marketing of Product Effect of Visuals and Display of Apparels on Final Buying Decision Relationship between Visual Merchandising and Impulse Buying Attractiveness of VM Techniques Title
38 39
25.
Exhibit 5.24
39
26.
Exhibit 5.25
41
27. S. No
Exhibit 5.26 Exhibit No.
42 Page No.
28. 29.
Factors of Visual Merchandising Frequency of Purchase
43 44
30. 31.
Reasons for Entering Big Bazaar Percentage of Customers who Purchased any Apparel during the Visit Effectiveness of Visual Merchandising
45 46
32.
Exhibit 5.31
46
Techniques Applied by Big Bazaar
LIST OF FIGURES
S. No 1. 2.
Figure No. Figure 5.1 Figure 5.2
Title
A Model of Impulse Buying Process Model to Increase Footfall and Consequently Conversion Rate in the Store using VM
Page No. 40 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 stores 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 stores 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-ogram. 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 stores 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 consumers 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 Indias 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 Groups 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 Groups 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 groups 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- Indias 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 countrys 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 Bazaars largest ever customer. Big Bazaar launches Shakti, Indias 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 Indias 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 groups 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 stores overall theme. Creating and maintaining a stores visual merchandising plan, however, is not a simple task. It is necessary to continually determine what the customer sees. This evaluation from the customers 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 stores 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 stores visual image. The stores 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/companys 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 consumers 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 todays 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 customers 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 : Riverside Store : 40 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.
70%
Percentage of Customers
60% 50% 40% 30% 20% 10% 0% Male Female
Gender
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.
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 16-25 years 26-35 years 36-45 years Above 46 years
Age of Customers
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.
70%
60% 50% 40% 30% 20% 10% 0% High School Intermediate Graduation Post Graduation Any other
Educational Qualification
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.
30% 25% 20% 15% 10% 5% 0%
Occupation of Customers
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.
60%
50% 40% 30% 20% 10% 0% Below 1 Lakh 1-3 Lakhs 3-5 Lakhs Above 5 Lakhs
Income of Customers
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.
70%
60% 50% 40% 30% 20% 10% 0% Nuclear Family Joint Family Extended family
Size of Family
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.
40% 35% 30% 25% 20% 15% 10% 5% 0%
Place of Purchase
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.
60%
50% 40% 30% 20% 10% 0% Morning Afternoon Evening After 8 pm
Time of Purchase
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.
60% 50% 40% 30% 20% 10% 0% First week of month Mid of month Last week of month Depending upon requirement
Time of Purchase
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.
80%
Percentage of customers
70% 60% 50% 40% 30% 20% 10% 0% Cash only Credit only Both
Mode of Purchase
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.
40% 35% 30% 25% 20% 15% 10% 5% 0% Less than 10% 10-20% 21-40% Above 40%
Monthly Income Spent on Total Shopping
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.
60%
50% 40% 30% 20% 10% 0% Less than 10% 10%-20% 21%-40% Above 40%
Income Spent on Purchase of Apparels
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.
40% 35% 30% 25% 20% 15% 10% 5% 0%
Reasons for Visiting an Organized Retail Outlet
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.
90%
80% 70% 60% 50% 40% 30% 20% 10% 0% Very Important Important Neutral Unimportant
Factors Affecting Purchase of Apparels
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.
100% 90%
80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No
Attention Paid to Displays and Signage
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.
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No
Role of Displays and Signage
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.
90%
80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No
Customers who Try New Apparels
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 hardearned cash.
100% 90%
80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No
Displays Attract More Attention
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.
35% 30% 25% 20% 15% 10% 5% 0%
Reasons for Choosing a Particular Store
. 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).
80%
70% 60% 50% 40% 30% 20% 10% 0% Yes No
Response of Customers
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.
80%
70% 60% 50% 40% 30% 20% 10% 0% Yes No
Effect of Good Interiors and Display on Buying Behaviour
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 todays 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.
100%
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Ask for availability Purchase whatever is available
Availability of Products
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 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.
50% 45%
40% 35% 30% 25% 20% 15% 10% 5% 0% Store person Store person displaying each assisting only and every item when needed Displayed in racks and hangers Displayed on Displayed with dummy help of electronic and print media
Method of Buying Apparels
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. Todays 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.
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No Can't say
Customers' response for Visual Merchandising to Promote Marketing of products
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.
80%
70% 60% 50% 40% 30% 20% 10% 0% Yes No
Effect of Visuals and Display of Apparels on Final Buying Decision
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)
60% 50%
40% 30% 20% 10% 0% Yes No
Relationship between VM and Impulse Buying
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 pointof-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.
30% 25% 20% 15% 10% 5% 0%
Attractiveness of VM Techniques
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.
70 60
Cleanliness and Neatness of store Attractiveness of Display Window Attractiveness of the Shop Fittings Innovative Assortments Lighting in the Store
50 40 30 20
Music 10 0 I II III IV V VI VII Display of Apparels using Dresiforms and Mannequins
Rank Given by Customers
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.
30%
25% 20% 15% 10% 5% 0% Within a month Within 2-3 months Within 4-6 months After 6 months Rarely
Frequency of Purchase
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.
60% 50% 40% 30% 20% 10% 0%
Reasons for Entering Big Bazaar
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 cant 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.
45%
40% 35% 30% 25% 20% 15% 10% 5% 0% Yes No Can't say
Customers' Response to Purchase of Any Apparel During the Visit
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.
80%
70% 60% 50% 40% 30% 20% 10% 0% Yes No Needs improvement Can't say
Effectiveness of VM Techniques
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 consumers 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. Heres 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 dont 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. Dont 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, crossmerchandised 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. Dont 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 buyers 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 eyecatching 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 customers 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.
8. BIBLIOGRAPHY
1. Baker, J., Grewal, D. and Parasuraman, A., (1994), The Effect of Store Atmosphere on Consumer Quality Perceptions and Store Image, Journal of the Academy of Marketing Science, 23-34. 2. Bastow-Shoop Holly, Dale Zetocha, Gregory Passewitz, (1991), Visual
Merchandising: A Guide for Small Retailers, University Publications, Iowa State University. 3. Bhalla Swati, Anurag S., Visual Merchandising,(2009), Understanding Retail and Visual Merchandising,2-30,Tata McGraw Hill. 4. Cahan, Linda and Joseph Robinson (1984), A Practical Guide to Visual Merchandising, John Wiley & Sons, New York. 5. Churchill, G.A. & Peter, J.P. (1998). Marketing: Creating value for customers. Boston: Irwin/McGraw-Hill. 6. Colborne, R., (1996), Visual merchandising: The business of merchandise presentation, Albany, New York: Delmar. 7. Donovan R. J., Rossiter J. R., Marcoolyn G. and Nesdale A.,(1994), Store Atmosphere and Purchasing Behaviour, Journal of Retailing,70, pp.283-294. 8. Han, Y.K., Morgan, G.A., Kotsiopulos, A. & Kang-Park, J., (1991), Impulse buying behavior of apparel purchasers, Clothing and Textile Research Journal, 9, 15-21. 9. Kotler, P., (1973-1974), Atmospherics as a Marketing Tool, Journal of Retailing, Volume 49, Number 4 Winter 1973-1974,48-64. 10. Kerfoot, S.,Davis, B., Ward, ( 2003), Visual merchandizing and the creation of discernible retail brands, International journal of Retail and Distribution Management, Vol. 31,143-152. 11. Kim Jiyeon, (2003), College Students Apparel Impulse Buying Behaviors in Relation to Visual Merchandising. 12. Law Derry, Joanne Yip,(2007), The Impact of Visual Merchandising on Consumer Decision Process for Intimate Apparel retrieved from http://dspace.lib.fcu.edu.tw/bitstream/2377/3942/1/ce05atc902007000065.pdf 13. McGoldrick, P. (2002). Retail Marketing (2nd Edition), Maidenhead: McGraw-Hill. 14. Milliman, R., (1982), Using Background Music to Affect the Behavior of Supermarket Shoppers, Journal of Marketing, Vol. 46, 86-91.
15. Park. C.W., Iyer, E.S. & Smith, D.C., (1989), The effects of situational factors on in-store grocery shopping behavior: The role of store environment and time available for shopping, Journal of Consumer Research, 15 (March), 422-433. 16. Rajgopal, (2009), Determinants of Shopping Behaviour of Urban Consumers retrieved from http://www.geocities.com/prof_rajagopal/homepage.html. 17. Ravazzi, C., (2000), Visual Merchandising: per sviluppare la vendita visiva nei punti di vendita di ogni tipo e dimensione, Milano: F. Angeli. 18. Semeijn, J. & van Riel, A. & Ambrosini, B., (2004), Consumer evaluations of store brands: effects of store image and product attributes, Journal of Retailing and Consumer Services, Volume 11, Issue 4, July 2004. 19. ttp://www.utalkmarketing.com/Pages/Article.aspx?ArticleID=1904&Title=How_vis ual_merchandising_can_improve_retail_fortunes. 20. Wanninayake W.M.C.B. and Pradeep Randiwela,(2007), The Impact of Visual Merchandising on Consumer Store Choice Decision in Sri Lankan Supermarkets. 21. Weishar, Joseph, (December 1984), The Business of...In-Store Marketing. Visual Merchandising & Store Design, Vol. 115 No. 12. 22. Weishar, Joseph, (March 1985), The Business of...Articulating Visual Aesthetics, Visual Merchandising & Store Design, Vol. 116 No. 3. 23. Weishar, Joseph, (November 1985), The Business of... Color. Visual Merchandising & Store Design, Vol. 116 No. 11. 24. Yalch, R.F. & Spangenberg, E., (1990), Effects of Store Music on Shopping Behavior, Journal of Consumer Marketing, 7 (Spring), 55-63. 25. http://www.linkedin.com/answers/marketing-sales/advertising-promotion/directmarketing/MAR_ADP_DMA/396200-25028298 retrieved on 3May, 2011. 26. www.futuregroup.com retrieved on 4 May, 2011. 27. http://www.whisperingwindow.com/attract-new-customers-store-windows retrieved on 10 May, 2011. 28. http://www.fibre2fashion.com/industry-article/13/1212/visual-merchandising-thechanging-scenario1.asp retrieved on 10 May, 2011. 29. http://www.ivoconsultants.com/images/Visual_MerchandisingConcepts%20&%20Concerns.pdf retrieved on 10 May, 2011.
ANNRXURE I QUESTIONNAIRE FOR SURVEY

1.Name of Respondent 2.Gender 3.Age Male / Female 1) 16-25 years 3) 36-45 years 1) High School Graduation 4) Post Graduation 1) Government Service 3) Self employment 1) Below 1,00,000 3) 3,00,001- 5,00,000 1) less> 4 6 2) 26-35 years 4) 46 years and above 2) Intermediate
4.Educational Qualification
3)
5. Occupation
5) Any other 2) Private job 4) Business 2) 1,00,001-3,00,000 4) Above 5,00,000 2) 4-6
6. Income Level ( per annum ) 7.No.of Family Members
3) Above
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. b. c. d. Hyper Market Malls Shopping Complex/Exclusive Showrooms Ordinary Retailers
Q2. When do you prefer to shop? a. b. c. d. Morning Afternoon Evening After 8 PM a. First week of month b. Mid of month c. Last week of month d. Depending upon requirement
Q3. What is your mode of purchase? a. Cash only b. Credit only c. Any of the above
Q4. What percent of your monthly income do you spend on shopping?
a. b. c. d.
Less than 10 % 10-20 % 21 40 % Above 40%
Q5. What percent of this shopping is spend on apparels? a. b. c. d. Less than 10 % 10-20% 21-40 % Above 40 %
Q6. What are the reasons for visiting an organized retail outlet? a. b. c. d. e. f. Ambience / Store environment Better quality Less price Attractive offers, schemes and discounts Variety Any other
Q7.How important are the following factors while purchasing apparels? Very important Price Quality Collection Variety Visual Merchandising Important Neutral Unimportant Very unimportant
Q8. While visiting a store do you pay any attention to displays and signage? a. Yes b. No Q9. Does these signage and display help you in shopping? a. Yes b. No Q10. If Yes, then how?
Q11. Do you have a look on items on display and try anything new? a. Yes b. No
Q12. Do the apparels on display attract more attention? a. Yes b. No Q13. If brands are almost same then what are the factors for visiting/choosing a particular store? a. b. c. d. e. Quality Less expensive as compared to other stores Better offers/ discounts/schemes Shopping Experience Store environment, ambience and visual merchandising
Q14.Does color, lighting, ambience and attractive visuals make you to spend more time in store? a. Yes b. No Q15.Do good interior and display affect your buying behavior and stimulate you to shop more? a. Yes b. 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 availability b. Purchase whatever is available Q17. Which means do you prefer for buying the product? a. b. c. d. e. f. Store person displaying each and every product Store person assisting you only when needed All product are displayed in racks and hangers Display with the help of dummy Display with the help of electronic media and print media Any other
Q18. Do you think that by applying VM techniques the company can market its products in a better way? a. Yes b. No c. Cant 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. Yes b. 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. Lighting
e. Space management f. Out-of-box thinking Q22. Rank the following attributes of Visual merchandising on a scale of 1-9: ATTRIBUTES Cleanliness and Neatness of store Attractiveness of Display Window Attractiveness of the shop fittings Inventiveness of assortments Atmosphere/Spirit Attractiveness of the presentation of clothes 7) Lighting in the store 8) Music 9) Display of apparels using dresiforms and mannequins 1) 2) 3) 4) 5) 6) RANK
Q23. How often do you purchase your apparels from Big Bazaar? a. b. c. d. e. Within a month Within 2-3 months Within 4-6 months After 6 months Rarely
Q24. What are the reasons / motivation for entering Big Bazaar store? a. b. c. d. e. f. g. Big Bazaar makes the part of the store that I visit regularly I was looking for something particular that I only found at Big Bazaar Because this store looks promising I was attracted by music I have seen something nice in the display Influenced by my relatives/friends I find quality products here
h. Attractive schemes and discounts i. Any other reason Q25. Have you purchased anything (apparel) during this visit? a. Yes b. No c. Cant say Q26. Do you like the VM techniques applied by Big Bazaar? a. b. c. d. Yes No Needs improvement Cant 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 Chancellors 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: chauhanmonika129@gmail.com

Effect of Visual Merchandising On Buying Behaviour of Customers

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EFFECT OF VISUAL MERCHANDISING ON BUYING BEHAVIOUR OF CUSTOMERS: A CASE OF BIG BAZAAR STORES IN LUCKNOW

Monika Chauhan Id. No. 32144

3 4 4.1 4.2 4.3

14-16 17-20 17 17 17-18 17 18 18 18-19 18 18 19 19 19 19-20 20 20 21-52 21-25 21-25

4.6 4.7 4.8 4.9 5 5.1

S. No 5.2 5.3 Behavioural Variable Whispering Window

Page No. 26-46 47

47-49 47-48 48-49 49-52

53 54-55 56 57-58 x-xiv

CONCLUSION SUGGESTIONS Bibliography Annexure Vita

Exhibit No. Exhibit 5.1

Comparison of Educational Qualification of Customers Visiting Big Bazaar

Comparison of Occupation of Customers Visiting Big Bazaar

Comparison of Income of Customers Visiting Big Bazaar

Comparison of Family Size of Customers Visiting Big Bazaar

Comparison between Places of Purchase

Exhibit 5.9 Exhibit 5.10

Mode of Purchase Percentage of Monthly Income Spent on Total Household Shopping

Percentage of Income Spent on Purchase of Apparels

S. No 13. 14. 15.

Exhibit No. Exhibit 5.12 Exhibit 5.13 Exhibit 5.14

Exhibit 5.16 Exhibit 5.17

Exhibit 5.18 Exhibit 5.19

Exhibit 5.22 Exhibit 5.23

Exhibit 5.26 Exhibit No.

Exhibit 5.27 Exhibit 5.28

Factors of Visual Merchandising Frequency of Purchase

Exhibit 5.29 Exhibit 5.30

Techniques Applied by Big Bazaar

Figure No. Figure 5.1 Figure 5.2

1.2.1 ROLE OF VISUAL MERCHANDISING

2.4.2 SIGNIFICANT FEATURES OF BIG BAZAAR

2.4.3 TIME LINES 2001

Electronic Bazaar and Furniture Bazaar are launched

4.2 Information Required

4.4 Area of Study

4.7 Data Analysis

5. RESULTS AND DISCUSSION

60% 50% 40% 30% 20% 10% 0% Male Female

Exhibit5.1 Percentage of Male and Female Customers Visiting Big Bazaar

Exhibit 5.3 Comparison of Educational Qualification of Customers Visiting Big Bazaar

30% 25% 20% 15% 10% 5% 0%

Exhibit 5.4 Comparison of Occupation of Customers Visiting Big Bazaar

Exhibit 5.5 Comparison of Income of Customers Visiting Big Bazaar

Exhibit 5.6 Comparison of Family Size of Customers Visiting Big Bazaar

40% 35% 30% 25% 20% 15% 10% 5% 0%

Exhibit 5.7 Comparison between Places of Purchase

50% 40% 30% 20% 10% 0% Morning Afternoon Evening After 8 pm

Exhibit 5.9 Mode of Purchase

Monthly Income Spent on Total Shopping

Exhibit 5.10 Percentage of Monthly Income Spent on Total Household Shopping

Income Spent on Purchase of Apparels

Exhibit 5.11 Percentage of Income Spent on Purchase of Apparels

40% 35% 30% 25% 20% 15% 10% 5% 0%

Reasons for Visiting an Organized Retail Outlet

Factors Affecting Purchase of Apparels

80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No

Attention Paid to Displays and Signage

Role of Displays and Signage

80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No

Customers who Try New Apparels

Exhibit 5.16 Percentage of Customers who Try New Apparels