Impact of Visual Merchandising on Impulse Buying Behaviour of Tesco Customers

1.Introduction

This proposal explains the methodology and brief literature review that would be addressed to fulfil research aim. This study will aim to investigate the impact of visual merchandising on impulse buying behaviour of customers. This study will explore how the effect of product shelf position, store layout and promotional signage influence the buying behaviour of customers. In this study Tesco will be selected as a case organization

[See Appendix for introduction of Tesco and Rationale of study].

1.1.Research aim

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

1.2.Objectives of study

This aim is fulfilled through following objectives:

1-To study the impact of windows displays on customer impulse buying behaviour

2. To study the effect of product shelf position on impulse buying behaviour of customers

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

4. To study the impact of promotional signage on impulse buying behaviour of Tesco customers.

1.3.Research Questions

The study is framed to offer an insight into the following questions:

• How window displays influence customer impulse buying behaviour?
• Does product shelf position have an impact on impulse buying behaviour?
• How store layout has an impact on impulse buying behaviour?
• How promotional signage influence impulse buying behaviour?

Table 1: Research Framework – Objectives, Hypotheses, Methodology and Analysis.
Objective	Proposition	Hypothesis	Methodology	Analysis
To study the impact of windows displays on customer impulse buying behaviour	Literature review so far suggests that product display positively influences the consumer impulse buying behaviour.	H1: In store product display have positive impact on consumer impulse buying behaviour. .	Primary Data Survey will be conducted Questionnaire will be used as a research tool Scale given by Rook and Fisher (1995) and Shoop et al. (1991) will be used	Quantitative Analysis: Through Regression and Correlation Statistical Package for Social Sciences 13.0
To investigate the relation between store layout and consumer impulse buying behaviour	Literature review so far suggests that store layout has a positive impact on consumer impulse buying behaviour	H2: Store layout positively influences consumer impulse buying behaviour.	Primary Data Survey will be conducted Questionnaire will be used as a research tool   Scale given by Rook and Fisher (1995) will be used	Quantitative Analysis: Through Regression and Correlation Statistical Package for Social Sciences 13.0
To study the impact of promotional signage on impulse buying behaviour of Tesco customers.	Literature review so far tells that promotion signage positively and significantly influences the impulse buying behaviour of customers	H3: Promotional signage positively influence and increase impulse buying behaviour	Primary Data Survey will be conducted Questionnaire will be used as a research tool Scale given by Rook and Fisher (1995) and Beatty & Ferrel(1998)will be used	Quantitative Analysis: Through Regression and Correlation Statistical Package for Social Sciences 13.0
To study the effect of product shelf position on impulse buying behaviour of customers	Literature review tells that product position at shelf influences the impulse buying behaviour of customers	H4: Product shelf position directly influence and increase consumer impulse buying behaviour.	Primary Data Survey will be conducted Questionnaire will be used Scale given by Rook and Fisher (1995) will be used	Quantitative Analysis: Through Regression and Correlation Statistical Package for Social Sciences 13.0

Source: developed by researcher (2014)

 

2. Literature Review

2.1.Impulse Buying Behaviour

Stern (1962) described consumer buying behaviour as planned or either unplanned. In this classification, planned buying behaviour usually requires intense information search which is followed by rational or normal decision making. Unplanned buying behaviour means all purchases made without advanced planning and it also includes impulse buying, which spontaneous speedy decision is making in response to stimuli (Xiao & Nicholson, 2011).

Rook (1987) described that impulse buying behaviour is spontaneous, strong and exciting, urge to purchase despite of its consequences. Some researchers view impulse buying as a trait and customers differ in their impulse buying behaviour (Rook & Fisher, 1995). Another research findings show that about 90 Percent of respondents purchase grocery products on impulse occasionally and 40 percent to 50 Percent buyers classified their purchases on impulse (Welles, 1986; Bellenger et al., 1978). McGoldrick (2002) gave four important dimensions of store atmosphere, visual, auditory, odour and tangible (touch) which are important to customers for making a choice. Retailers put more importance on visual merchandizing to differentiate their products from competitors as all merchandize are similar nowadays.

In impulse buying process consumers are may influenced by both internal and external stimuli (Sherry, 1990; Puri, 1996; Rook & Fisher, 1995). Youn and Faber (2000) described different internal and external cues that influence impulse buying. Internal cues include customer’s current state or feeling either positive or negative. External cues include retail atmosphere or environment and marketing mix.

2.2.Visual Mechanizing

Visual merchandizing includes everything that is visible to consumers. Visual merchandizing can create brand identity and also gives competitive edge. Visual merchandizing nowadays has become very important as it aid clients to see good things easily and to approach them physically, Visual merchandizing act as important communication tool between retailer and customer (Davies, 2003)

Visual merchandizing includes all interior and exterior display or presentation such as floor and store displays, window display and promotional signage (Mills et al., 1995). Other techniques of visual display are also mentioned in literature including product  shelf position, colour, cleanliness, proper lightening, etc (Young et al., 2007; Kerfoot et al., 2003). Herbert (1999) stated that more illuminated merchandize persuade customers to browse through the store and increase likelihood of purchase. Different visual merchandizing techniques can be used depending upon type of store and its layout (Ebster & Garaus, 2011).

Law et al. (2012) identified that visual merchandizing persuade customer to buy, build awareness, provide information, remind the customers about specific products and help the customer in easily locating and choosing a product. More than 50 percent of super market purchases are unplanned (Iyer, 1989). In store browsing, it is another external factor that can create a desire to buy. It becomes difficult for shopper to refrain from buying the product due to physical presence of product (Jones et al., 2003). Law et al. (2012) identified that ocular merchandizing convince buyer to buy, build alertness offer information, remind the customers about specific products and help the customer in easily locating and choosing a product. More than 50 Percent of super market purchases are unplanned (Iyer, 1989).

In research, we will consider only four techniques of visual display including store layout, product display, and product shelf position and promotional signage.

 

Figure: Visual Mechanizing Techniques

Source: developed by Researcher (2014)

 

2.2.1.In store product display

In store browsing is another external factor that can create a desire to buy. It becomes difficult for shopper to refrain from buying the product due to physical presence of product  Jones et al. (2003). In store displays take three forms, product display, architectural display or display at the point where customer pays the bill. In store display promote the product and create desire for customers to buy the product (Bastow-Shoop et al., 1991). Hence we propose that

H1: In store product display have positive impact on consumer impulse buying behaviour.

2.2.2.Store layout

Store layout means that different sections in store are organized in such a way which helps customers to shop and buy more. Visual influences help customers to make purchases(Davies & Tilley, 2004).In supermarkets grid pattern is used  in which products are placed in rectangular shelves ,Gird pattern increase customer exposure, efficiently utilize space and increase purchase intension (McGoldrick, 2002). ).Park et al. (1989) identified that store layout plays major role in impulse buying and brand switching. He studied different store and concluded that in unfamiliar or new stores impulse buying in higher as customers face difficulty in finding the needed product and in doing so purchase unintended products.so we propose that

H2: Store layout positively influences consumer impulse buying behavior.

2.2.3.Promotional signage

As defined by Piron (2003) promotional signage is done alone or it is combined with store display to give product and promotional information to customers to create demand for products. In store promotion helps customers in making buying decision and advertisements inside the store increase unplanned purchases. (Wilkinson etal.1982)

H3: Promotional signage positively influence and increase impulse buying behavior

2.2.4.Product shelf position

Product shelf position is an important factor influencing sales and consumers impulse buying behaviour (Hoch & Purk, 1994). Product position studies on store observed that most of the customers ignore one third products in the shelves due to their positions (Larson, 2006).So retailers should highlight the items they want to sell.

H4: Product shelf position directly influence and increase consumer impulse buying behavior.

2.3.Theoretical framework

From literature following framework is developed

Figure: Framework

Source: developed by researcher (2014)

 

3.Methodology

The research methodology means methods that are used to conduct the research study. The research methodology explained in this chapter includes type of investigation, data collection methods, accessibility issues, example techniques, analysis of data and understanding methods.   Considerations and limitation are also an important part in any research so keeping in mind the importance of research ethics, this chapter also focused on the ethical issues. The researcher process is explained in Appendix.

3.1.Type of investigation

There are three types of investigation casual descriptive and exploratory research. Exploratory research is done when a researcher wants to explore new areas which are not identified before by any researcher. Exploratory research is worn when researchers want to get handy into broad character of trouble, the choices as well as associated variable which are inclined (Asker et al, 2001). Researchers as well as practitioners usually maintain exploratory advance as they don’t have prior insights in to study area and this create them facilitate to be supple. In descriptive investigate approach results are based on hypothesis which is more precise and give exact opinions regarding research environment. Third approach is casual research approach. As said by Aaker et al. (2001) Causal advance is worn when researcher want to study cause and effect of different variables on each another. In casual approach Surveys, case studies and experiments are used. In this research descriptive approach is used as results of the study will be totally based on hypothesis.

3.2.Research approach

There are three categories of research approaches used to demeanour study which includes objective in addition to subjective advance, inductive plus deductive approach in addition to quantitative plus qualitative approach (Yin, 2002). In Qualitative advance qualitative data is discovered and different methods are used to perform research study such as consultation, case studies in addition to observations etc. Quantitative approach give results in number and figures (Aaker et al., 2001). In quantitative learning questionnaire are worn to gather data.  In this learning quantitative approach is used as questionnaire is build and distributed amongst the sample in order to acquire their opinions about the issue. It is a more scientific approach for a study and generates statistical data (Creswell, 2003)

3.3.Sampling technique

There are two main sampling techniques, probability sampling and non-probability sampling technique. In probability sample every unit of population has a known chance to be selected (Malhotra and Birks, 2006).The non-probability sampling is convenient way for researchers to assemble a sample with little or no cost (Babbie, 1990). [For further of non-probability sampling explanation, see Appendix]. Data will be collected from Tesco customers by non probability convenient sampling technique. This technique of sampling will be used due to resource and time constraint. As convenience sampling is a technique in which a researcher’s “convenience forms the basis for selecting a sample of units” as respondents  are “chosen because they happen to be in the right time and right place, so that implies selecting any respondent who is readily available”  (Malhotra and Birks, 2006)

3.4.Data collection techniques

In this study primary data will be collected by use of questionnaire. Questionnaire is adopted from previous study. To collect the data questionnaire will be distributed among customers of Tesco. Questionnaire is significant as well as useful tool to collect data for marketing study. A survey form which is developed through appropriate testing, thoughtful design and specified managementcan help in providing definite as well as accurate data (Walker, 1997).

3.5.Population

The participant population will be all customers of Tesco.

3.6.Sample          

Sample will be drawn from customers who visit Tesco for shopping.

3.7.Sample size

Sample size of 100 respondents will be considered for this study.

3.8.Instrument design

Questionnaire consists of six sections. Section one measures independent variable i.e. impulse buying. Remaining sections measure independent variables i.e. store layout, product display, and product shelf position and promotion signage.

3.8.1.Measures

The measures of current study have been adopted from previous studies as shown in table .The dependent variable of this study was impulse buying behaviour.

Table: Adopted Scale for Research Instrument

Variables	Source
Impulse buying	Rook and Fisher (1995)
Store layout	Rook and Fisher (1995)
Product display	Shoop et al. (1991)
Promotional signage	Beatty & Ferrel(1998)
Product shelf position	Rook and Fisher (1995)

Source: developed by researcher (2014)

3.9.Data accessibility method

Data will be collected through customers by personally visiting Tesco. Customers will be asked to fill the questionnaires. Our sample will consist of customers who visit there for shopping. Researcher will also try to access the email address and postal address of customers from Tesco. There is possibility that Tesco will not provide data. So, if this will happen then questionnaires will be filled only by visiting Tesco.

3.10.Research Ethics

It is very important to follow ethical consideration in research .This study will be conducted by keeping in view ethical considerations. All data collected from published journals, Literature review contains name of authors or researcher who previously conducted the research. Personal interest and biasness will be avoided in study. Data will be collected from only those who will be willing to fill the questionnaire. The results will be available to public and retailers with the permission of Tesco. This study will not harm anyone. A consent form will be signed from every respondents and that consent from will assure them that there will be no risk and benefit for being part of this study. Their data will not be published with their name. The research aim will be clearly mentioned there [See Appendix]. 

3.1.Data Analysis

Data will be analysed by statistical tools by use of SPSS software. Data will be analysed on basis of linear regression. Correlation and Regression analysis will be performed by keeping impulse buying as dependent variable and store layout, product display, shelf position and promotional signage as independent variable.

3.2.LIMITATIONS

From all techniques mention in literature which influence impulse buying we only focused on store layout ,in store product display, product shelf position and promotional signage. Due to time constraint convenient sampling will be used to collect data. Small sample will be considered for this study.

3.3.Time framework

 

	1-2th Week	3-4th week	5-6th week	7th -8th week	9th-10th week	11th – 12th week	13-14th week	15-16th week
Introduction
Literature Review
Methodology
Data Collection
SPPS data punching
Data Analysis
Findings and Analysis
Discussion and Conclusion

.

 

 

References

Abratt, R., and Goodey, S. D. 1990.Unplanned buying and in-store stimuli in supermarkets. Managerial and Decision Economics, 11(2), pp.111-121

Babbie, E. (1990).Survey Research Methods. California:Wadsworth Publishing Company.

Baker, J., Dhruv, G., and Levy, M. 1992. An experimental approach to making retail store environmental decisions. Journal of Retailing, 68(Winter),pp. 445-461

Baker, J., Grewal, D., and  Parasuraman, A. 1994. The influence of store environment on quality inferences and store image. Journal of Academy of Marketing Science, 22 (4), pp. 328-339.

Beatty, S., and Ferrell, E. M. 1998. Impulse buying; Modelling its precursors. Journal of Retailing, 74(2), pp.169-190

Bellenger, D.N., Robertson, D.H., and Hirschman, E.C. 1978. Impulse buying varies by product. Journal of Advertising Research, 18(6), pp.15–18

Creswell, J.W., 2003. Qualitative, Quantitative and mixed method approaches.

Davies, J., and Tilley, N. 2004. Interior Displays: Using the Management Services Approach in Retail Premises. Managing Services 10, 48 (7), pp.10-13

Davies, B., and Kerfoot, S., Ward, P. 2003.Visual merchandizing and the creation of discernible retail brands. International Journal of Retail and Distribution Management, 43(3), pp.143-152

Dittmar, H., Beattie, J.,and Friese, S. 1995. Gender identity and material symbols: Objects and decision considerations in impulse purchases. Journal of Economic Psychology, 16(3), pp.491-511

Dawson, S., & Kim, M. 2009. External and internal trigger cues of impulse buying online. Direct Marketing: An International Journal, 3(1), pp.20-34

Iyer, E.S. 1989. Unplanned purchasing: knowledge of shopping environment and time pressure. Journal of Retailing, 65 (1), pp.40-57

Kolter, P. 1974 .Atmosphere as a marketing tool. Journal of retailing, 49(4), pp.319-339

Kollat, D. T., and Willett, R. P. 1967. Is impulse purchasing really a useful concept for marketing decisions? Journal of Marketing Research, 4, pp.21-31.

Law, D., Wong, C., and Yip, J. 2012. How does visual merchandising affect consumer affective response? European Journal of Marketing, 46(1/2), pp.112-1

Larson, R. 2006. Core Principles for Supermarket Aisle Management. Journal of Food   Distribution Research, 37 (1),pp. 101-111.

Malhotra, N., & Birks, D. 2007. Marketing Research. an applied approach. London: Prentice Hall

McGoldrick , P.2002 .Retail marketing .McGraw hill ,Maidenhead

Rook, D. W., and Fisher, R. J. 1995. Normative influence on impulsive buying behaviour. Journal of Consumer Research, 21(3), pp.306-313.

Stern, H. 1962. The significance of impulse buying today. Journal of Marketing, 26(2),pp. 59–62.

Bastow-Shoop, H., Zetocha, D., and  Passewitz, G. 1991. Visual merchandising: A guide for small retailers. Iowa: University Publications

Hoch.,S.,and  Purk,E .1994. Shelf Management and Space Elasticity, Journal of Retailing, pp. 301-326

 

Appendix

A.Introduction to Tesco

Tesco is multinational merchandise retailer in England established in 1999.Based on profits it is considered as second largest retailers in the world. It is considered as third largest retailer in the world in terms of revenue. It has number of retail store across fourteen countries including Asia, Europe and North America.

B.Rationale of study

1.1.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.

1.2.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.

1.3.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.

1.4.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.

C.Non-Probability Sampling

Sampling is the use of a subset of the population to represent the whole population. Probability sampling, or random sampling, is a sampling technique in which the probability of getting any particular sample may be calculated. Non-probability sampling does not meet this criterion and should be used with caution. Non-probability sampling techniques cannot be used to infer from the sample to the general population.

The advantage of non-probability sampling is its lower cost compared to probability sampling. However, one can say much less on the basis of a non-probability sample than on the basis of a probability sample. Of course, research practice appears to belie this claim, because many analysts draw generalizations (e.g., propose new theory, propose policy) from analyses of non-probability sampled data. One must ask, however, whether those published works are publishable because tradition makes them so, or because there really are justifiable grounds for drawing generalizations from studies based on non-probability samples.

Still, some use non-probability sampling. Examples of non-probability sampling include:

1. Convenience, Haphazard or Accidental sampling - members of the population are chosen based on their relative ease of access. To sample friends, co-workers, or shoppers at a single mall, are all examples of convenience sampling. Such samples are biased because researchers may unconsciously approach some kinds of respondents and avoid others and respondents who volunteer for a study may differ in unknown but important ways from others.
2. Snowball sampling - The first respondent refers a friend. The friend also refers a friend, and so on. Such samples are biased because they give people with more social connections an unknown but higher chance of selection.
3. Judgmental sampling or Purposive sampling - The researcher chooses the sample based on who they think would be appropriate for the study. This is used primarily when there is a limited number of people that have expertise in the area being researched. Such samples are biased because prominent experts may differ from other, equally expert, less prominent persons.
4. Deviant Case - The researcher obtains cases that substantially differ from the dominant pattern (a special type of purposive sample). The results can biasedly estimate the deviant case situation because the researcher may select visible deviants (e.g., students who act out in class) and thus miss other deviants (e.g., students who silently deviate from the dominant pattern).
5. Case study - The research is limited to one group, often with a similar characteristic or of small size. Such work can be biased for generalizing to other cases, but may not be biased for understanding the one case studied.
6. ad hoc quotas - A quota is established (say 65% women) and researchers are free to choose any respondent they wish as long as the quota is met. The researcher may approach people the researcher is comfortable addressing, leading to biases in the research.

In study, Convenience Sampling will be used.

 

D.Research Process

The research will follow Suander’s research process. This figure explains the research process. Researcher will follow this process.

E.Proposed Structure of Research

Section	Content Summary
Supporting Documentation	Cover note Plagiarism declaration Tutor contact sheet Turnitin receipt
Front Matter	Title page Abstract Contents page Table of figures
Chapter 1 – Introduction and Background Information	About the research study General aims and purpose of study The research issue Why it is an issue and relevant to the case-study organisation Researcher’s interest in the topic Introduction to the organisation Summary of the industry
Chapter 2 – Literature Review and Theoretical Framework	Summary of findings from existing literature Limitations of existing literature Discussion of existing theoretical framework and context for research Implications for the research study
Chapter 3 – Methodology	Summary of methodology and rationale adopted: Questionnaire design sampling coding frameworks data analysis plan Justification for the choice of methodology adopted Limitations of research methodology
Chapter 4 – Analysis and Findings	Analysis of findings in relation to the objectives, hypotheses and methodology Inclusion of data tables, quotes and diagrams Inferences drawn from findings
Chapter 5 – Discussion of Findings	Implications of findings for research questions Implications of findings for future research Limitations of research and findings
Chapter 6 – Conclusion and Recommendations	Conclusions developed in relation to the research aims, objectives, questions and hypotheses, analysis and findings and implications for future research Fulfilment of research aims and objectives
Chapter 7 – References	Articles Books Websites Online papers Secondary data sources
Chapter 8 – Appendices	To be determined, but will include data and information referred to but not included in the body of the report

 

 

F.Stakeholder Analysis

High power	TESCO board TESCO Senior Management team	Tesco Research Manager	Participants LSM Tutor/supervisor Anglia Ruskin Ethical Research Committee Researcher
Middle power		Customer Service Manager at Tesco
Low power	Staff of TESCO	Researcher’s manager Researcher’s family
	Low interest	Middle interest	High Interest

 

 

G.Consent Form for Participation in a Research Study

 

Title: Impact of Visual Merchandising on Impulse Buying Behaviour of Tesco Customers

Description of the research and participation

You are invited to participate in a research study conducted by (insert the name of the Principal Investigator here). The purpose of this research is to investigate the impact of visual merchandizing techniques on impulse buying behavior of Tesco customers..

Risks and discomforts: There are no known risks associated with this research.

Potential benefits: There are no known benefits to you that would result from your participation in this research.

Protection of confidentiality: We will do everything we can to protect your privacy. If appropriate, follow the description with: Your identity will not be revealed in any publication resulting from this study

Voluntary participation: Your participation in this research study is voluntary. You may choose not to participate and you may withdraw your consent to participate at any time. You will not be penalized in any way should you decide not to participate or to withdraw from this study.

Consent

 

 

I have read this consent form and have been given the opportunity to ask questions. I give my consent to participate in this study.

Participant’s signature_______________________________  Date:_________________