1.of research

The title of the research for which this preliminary research report has been designed is “Impact of Visual Merchandising on Impulse Buying Behavior of Tesco Customers”

2.Introduction

The stiff competition and similarity of merchandize in today’s retail environment force retailers to use visual merchandizing to differentiate their products from competitors. The purpose of this research is to study the relationship and effect of visual merchandizing on impulse buying behavior on customers of Tesco. Since many researches show that impulse buying is influenced by internal and external factors in retail environment (Beatty & Ferrell, 1998), Impulse buying is defined as unplanned buying or purchases that are not planned in advance (Bellenger et al.1978; Stern, 1962). The focus of this research will be on four types of visual merchandizing, store layout, product display, product shelf position and promotional signage and their impact on impulse buying. The study would be conducted with a problem statement that which visual merchandizing techniques have an impact on impulse buying.

Findings from other researches show that impulse buying has substantial impact on sales on different product categories (Bellenger, 1978; Cobb & Hoyer, 1986; Kollat & Willet, 1967; Rook & Fisher, 1995; Weinberg & Gottwald, 1982).This study will provide information on why visual merchandizing is an important tool which influence impulse buying behavior and ultimately increase sales. Since, it is postulated out from the previous researches that visual merchandising impacts over the impulse buying behavior. Therefore, there is a need to research out this issue at TESCO.

3.Rationale

3.1.What is the research issue?

In the retailing stores which are meant for the sale of the FMCGs and other necessaties of daily use and life, the visual merchandising is not given due attention. Therefore, this is a problem because it tends to stimulate the impulse buying behavior (Darden et al 1983). In this reagrd TESCO will be selected to review how the four type of visual merchanidisng is being done at TESCO.

3.2.Why is it an issue? 

There is not much available literature which emphasize on current topic of research that I have selected. This is very important area of study as retailers first goal is to attract consumer towards the store and create an impression. For that store atmosphere plays very important role. In store product displays and product shelf position plays an important role in consumer buying decisions. However, most of the available current literature on impulse buying behavior and visual merchandizing is related to windows display. Promotional signage in store which effect decisions of many consumers and trigger lead to impulse buying is not considered in many research studies. Promotional signage and store layout in visual merchandizing are neglected area in research.

3.3.Why is it an issue now? 

This is a research issue because customer’s expectations are changing and retailers should emphasize on merchandize presentation and customers expectation providing right environment for them. Visual merchandizing influences impulse buying and also helps firm to build its image leading to competitive advantage. However, a lot of retailers are using visual merchandizing but there should be better innovation in it to get better results. Impulse buying universal nature can be influenced by retailers to increase their profits. Various factors leading to impulse buying could increase sales and profit which would benefit marketers and retailers. In addition to this, there is a need to research this issue so as to compete in market.

3.4.What could this research shed light on? 

This study would give significant information on visual merchandizing and its importance in creating positive store image and store profits. This research will also provide information to retailers that which type of visual merchandising techniques is most effective that will influence customer impulse buying behaviors.

The research can shed light on the loopholes of the literature and can add to the literature. The research is important from the perspective of retailers and marketers as this type of merchandising can attract consumers. Hence, the topic is of great importance.

References

1. Abratt, R., & Goodey, S. D. (1990).Unplanned buying and in-store stimuli in supermarkets. Managerial and Decision Economics, 11(2), 111-121
2. Baker, J., Dhruv, G., & Levy, M. (1992). An experimental approach to making retail store environmental decisions. Journal of Retailing, 68(Winter), 445-461
3. Beatty, S., & Ferrell, E. M. (1998). Impulse buying; Modeling its precursors. Journal of Retailing, 74(2), 169-190.
4. Bellenger, D.N., Robertson, D.H., & Hirschman, E.C. (1978). Impulse buying varies by product.Journal of Advertising Research, 18(6), 15–18.
5. Cobb, C.J. & Hoyer, W.D. (1986). Planned versus impulse purchase behavior. Journal of Retailing, 62384-409.
6. Darden, W.R., Erdem,O. & Darden, D.K. (1983). A comparison and test of three casual models ofnpatronage intentions. Patronge Behavior and Retail Management, New York, NY: North Holland.
7. McGoldrick , P.(2002) .Retail marketing ,McGraw hill ,Maidenhead
8. Kollat, D. T., & Willett, R. P. (1967). Is impulse purchasing really a useful concept fo marketing decisions? Journal of Marketing Research, 4, 21-31.
9. Rook, D.W. & Fisher, R.J. (1995). Trait and normative aspects of impulsive buying behavior. Journal of Consumer Research, 22 (3), 305-13.
10. Rook, D. (1987). The buying impulse. Journal of Consumer Research , 14 (3), 189-198.
11. Weinberg, P. & Gottwald, W. (1982). Impulsive consumer buying as a result of emotions. Journal of Business Research, 10, 43-57.
12. Zhou, L., Wong, A.(2008).Consumer Impulse Buying and In-Store Stimuli in Chinese Supermarkets. Journal of International Consumer Marketing, 16(2), 37-53.

Appendix

Research Aim

The aim of this research is to investigate the impact of visual merchandizing techniques on impulse buying behavior of Tesco customers.

Objectives of Research

1. To study the impact of windows displays on customer impulse buying behavior

2. To study the effect of product shelf position on consumer impulse buying behavior.

3. To investigate the relation between store layout and consumer impulse buying behavior

4. To study the impact of promotional signage on consumer impulse buying behavior.