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Store design and visible merchandising on customer purchase

Great store demonstration and product merchandising is like a good booklet. It's got an alluring cover to lure, an interesting first chapter to see the reader they've made a good choice, and a satisfying conclusion to obtain the audience to want more. The tools used to accomplish these attributes are based on creating the most satisfying experience for the shopper, turning browsers into potential buyers.


1. 1 What is store design and Visible Merchandising?

It can be an art which involves the execution of effective design and product presentation ideas to increase store traffic and sales volume. Store design is the basic layout of the store using signage and other techniques to guide customers through the store and assist them in finding and finding information about items which is backed by visible merchandising techniques implemented. There many type of store designs some as 1. Grid structure, racetrack design, free form layout.

1. 2 Idea of Visual Merchandising

It is referred to as Point-Of Purchase (POP) Display.

It will involve everything the clients see both external and interior, that creates positive image of a small business and results attention, interest, desire and action on the part of the customer.

Visual merchandising is the artwork of implementing effective design ideas to increase store traffic and sales volume level.

It is often referred to as the silent salesperson.

Informing and educating customers about the merchandise or service.

Adding value to the atmosphere of the store.

Making it easier for the shopper to self-select.

Acting as a significant promotional tool.

Drawing attention of the customer to allow him to adopt purchase decisions within shortest period of time and thus augmenting the advertising process.

To talk to the mark customers much more easily.

To entice customers during celebrations and occasions.

Offering a definite personal information to a retail store vis- -vis your competition.

Implementing the retailer's strategy.

Influence customer buying habit.

Provide versatility.

Control design and maintenance cost. Etc.

Components of visible merchandising:

Figure -1. Components of visual merchandising

Visual merchandise means:

Emotional stimuli

Make your competencies visible.

Make strategic relevant products best apparent.

Increase the amount of consumer recognition.

Formulating activities to stimulate additional sales.

To provide consumers effective information & psychological loaded pictures helping customer please and shopping activity.

1. 4 Little about RETAIL INDUSTRY in India.

Retailing in India is flourishing contributing 11% of GDP, changing lifestyle, demographics, purchasing electric power, emergence of new cross malls etc is taking the retail industry a fresh existence in India. Retail industry in India is considered 5th most future industry in India. There may be huge potential in the retail market yet there a wide range of untapped and unexplored market is available.

The development of Indian retail sector will be US$ 40 billion this year 2010 will reach to 175-200 billion in 2016.

Figure 2: Expected Progress of retail and contribution of GDP

Figure 3: Types of Indian Retail Sector


Convenient stores

Department stores

Shopping malls

Specialty chains

Super markets

Discount stores

Hyper market

Individual retailers

Indian Retail Industry

Executive summary

The study is intended at learning about out the influence of store design and aesthetic merchandising (VM) on customer buying decision and action. Visual merchandising and store design is increasing significant importance in India with the swift progress of retail industry.

The whole idea is transforming visitors to purchasers and shoppers to buyers. It is been studied previously that 70 percent70 % of the purchase decisions are created inside the store and needs can be created through store design and visible merchandising.

The research strategy includes floor director surveys gaining off their experience and also from visible merchandising managers. Questionnaire survey (both at stores and online). Sample size is just about 110 taking age group from 16-70.

A telephonic interview with an inside designer who may have design stores can be help as a secondary data.

Though many interesting learning will be achieved on the role of visual merchandising in retail stores on consumer behavior, it has certain limits, merchandising differ significantly in several states of the united states but due to limitations of the time and other options untouched the test will be from Ahmedabad city only. Yet this study is carried out with planning and effort intended to throw light on the subject and attempting to explore more about Store design and VM.


3. 1 Targets of the analysis:

Figure-4 goals of the study

On a far more specific note, the marketplace researcher's problem (MRP) can be divided into the next:-

Marketer's problem- 1: Influence of visual merchandising on the purchase decision of customers in the retail store.

Marketer's problem- 2: to study the buying decisions and choices are done inside the store of pre decisive way by the clients.

(Common questions which can only help us understand buying behavior)

Marketer's problem- 3: What sort of store design and space management in a shop governs the client buying behavior and its impact.

Marketer's problem- 4: To understand if the clients actively look for the new arrivals, new products in a store and their items browsing behavior.

3. 2 Rational of the study

If we look across and speak about customers carry a perception and an image of the store through their past knowledge, experience and for example even have found out about it may well not have visit. It is vital for a internet entrepreneur to know what drives the client to the store and how to handle each customer keeping their objectives and their buying behavior. Customers nowadays has knowledge about products, brands and even the costs available for sale at different shops so The research of store design, space management and visual merchandising will help us know how different techniques associated with each aspect of store design, SM & VM impact and their impact on consumer decision making. It will also help us know how different retail chains & different retail marketplaces implements merchandising management and adopts store design coverage keeping what aspects on mind. It can help us know the new and creative ideas a store adopts to be able to entice customers i. e new customers and hold on to existing customers. The goal of the study is also to learn how shop designing in a momentary look of 4-5 seconds of customer is able to attract through external, i. e. to bring them in the store, through interior look i. e. to keep them in the store and interestingly browse through the merchandise of the store i. e. the way the product collection techniques are being used and what role visual merchandise have that can be played in that matter.

3. 3 Scope of the study

Our prime concentrate of review would remain on impact & affect of store design, SM & VM on buying decision of a person. I would also touch upon different kinds of the structure, merchandising options, available tools for visual merchandising and exactly how space management helps know the how much space allotment is required to what products and where.

Literature review:

Visual merchandising and store design can be an important element in atmospheric management. It offers both store external surfaces and store interior. Store external surfaces includes window display, retail premises and front side while store interior includes store layout, fixtures and fitting, wall display and store highlights. Also, there are components regulating both store outside and interior, which includes color co-ordination, lighting design and the application of design principles. If sellers want to project the best side of the company, a good selection of the visible merchandising with a detailed account of proper cooperate expressions are vital. Because of this, customer can have the intended message of suppliers through different types of theme a style developed from appropriate visual merchandising strategy. Last but not least, visual merchandising helps retaining the overall image of a shop in consumers head.

Apart from retail personal information building, visible merchandising is undoubtedly a robust tool in shaping consumers final decision inside a store. VM focuses on various aspects of consumers, such as sensory pleasure, affective pleasure and cognitive please. Sensory aspect includes personal feeling of consumers, such a reply to temperature and noise, sense crowded in a store. Screen display plays a crucial role in impacting store accessibility decisions as it is very important information cue for consumers.

A better part of any successful analysis owes to the supplementary research of printed works. A brief idea of what was already done provides wonderful insights about how exactly it could be taken to another level. Shopping has transformed from necessity with an adventure. It's more of an event, opportunity for party. No more days and nights of making a grocery list and heading to kirana store buy grocery or planning the shopping and go directly to the called store. Shopping is a breakthrough from the limited schedule, period to liberate and surely got to the shopping center. The double transformation theory talks about visitors

converting into purchasers and shoppers eventually in to clients. A good display makes people head into the store and also helps in making them looking at the item offer by the store. There exists considerable upsurge in middle class Indian families accompanied by increase in purchase power which leads vendors to find new and creative ways to get customers of different section to buy goods and services for which visible merchandising, store design and space management performs an essential role. Advantages of slotting allowances which necessitate payments by companies to vendors for providing shelf space for services becomes relevant in this context.

It is all about how precisely to make customers look at your products. Visible merchandising and store design has powered retail business like an hurricane. It is the key to unchain-feelings and dreams that drive the purchasing decisions that people make in every day lives. Studies disclose that indoor signage play a dominant role in attracting customers to buy certain products. "Standee" is preferred by nearly all shoppers accompanied by drop down and shelf stock signage.

ITC choupal fresh explored that the stands and stacks were positioned on the still left hand part and the billing counter was on the right side of the store analyzing that the majority of the customers look on the departed instead right while joining a store. In addition they designed special section and racks for fruits & vegetables to make it look more desirable.

It has been pointed out that most of the decision about purchase are created inside the store, 70% of the purchase are created on the point of purchase which have considerable impact on shopping habit.

Australian teacher of design collection argued that:

Retail design initiates in picking up store sales if the sq. mts (retail floor) is productively design and also there are a great many other factors influencing or prompting the customer to

buy a product which essentially includes quality of the item, pricing options, how the merchandise is viewed, merchandise is a subject of campaign too (how it is advertising is guiding the customer, the smooth and pleasant ambience reflects the importance of aesthetic merchandising advertising store design.


The study will be done on the retail industry, specifically the discount stores, supermarkets and hypermarkets and the clothing industry which are the pioneer in part of putting into action store design and visible merchandising strategies and techniques. The objective of the analysis is to comprehend the impact of store design, design & aesthetic merchandising on the buying tendencies and the buying decisions of the customers.

5. 1 Amount 5 - Research Process Flow

5. 2 Sampling plan:

Figure 6 - Sampling Plan


Survey method will be achieved in order to accumulate recent data which will be done through both direct survey and online survey. Online survey requires more data cleaning as the examples are judgmental. Responses from the target test will be filtered and eradicated if needed.

5. 4 Examination PLAN

SPSS will be placed to make use of to analysis of the info gathered. SPSS will be provided with cleaned out and coded inputs this will help in achieving the desired and important results of the study done.

5. 5 Qualitative research: Exploratory method in use.

5. 6 Descriptive research

Circulating a rightly designed questionnaire among walk-in customers. Online survey will be achieved asking the customers to answer based on their recent visit to a retail outlet.

5. 7 Depth interviews

Floor professionals and aesthetic merchandising director along with retail store interior design will be approached for an interview to get latest insights and learning.

5. 8 Observational research

Customer at live at a shop will be observe which will give interesting information.

5. 9 Quantitative research:

Data is by means of numbers and information. The aim is to classify features, count up them, and construct statistical models so that they can explain what is observed. Appropriate Examples will be taken and Surveys like Computer/Online Studies, Telephone survey, Hybrid Methods, will be the primary approach to quantitative research. Some of Likelihood and non-probability sampling can be utilized while executing a survey. The info from this article comes from various articles, publications, directories, and a concentrate group with supermarket buyers, interviews with current employees and management.

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