VISUAL MERCHANDISING

AND ITS IMPACT ON

COMSUMER BEHAVIOUR
JURY ASSIGNMENT

Anika K. Pandey | Ilisha Chaudhary

https://www.intelistyle.com/online-visual-merchandising-what-it-is-and-6-best-practices/
INTRODUCTION
Visual merchandising can be defined as everything that a customer sees,
both inside and outside of a business, that contributes to a favourable
perception of the enterprise and draws the customer's attention, interest,
desire, and action.
With the rise of self-service retailing, visual merchandising has become
increasingly important.
Study is to look at the relationship between how visual merchandising
affects consumer behaviour and how relationships of VM with fashion
trends and branding,store design, online visual merchandising elements,
and new upcoming technologies aids in forming consumer percpective.

Akhilendra, S. P., & Muthusamy Aravendan. (2023). A Review on Apparel Fashion Trends, Visual Merchandising and Fashion Branding. Intelligent Information Management, 15(03), 120–159. https://doi.org/10.4236/iim.2023.153007
https://www.intelistyle.com/online-visual-merchandising-what-it-is-and-6-bes
Oliveira, P.H.P. and Lutterbach, M.F.T. (2020) How Visual Merchandising Can Improve Fashion Retail Stores to Adapt Themselves to Next Generations. Independent Journal of Management & Production, 11, 1980-1193. https://doi.org/10.14807/ijmp.v11i6.1053
 FASHION TRENDS AND BRANDING
Fashion consumers are divided into fashion forwards and followers
Industrial, Baby Boomers, and Generation X influenced market rules, leading to new values. The 1980s
saw a shift in generational divide, forming Millennials: digital migrants (Generation Y) and natives
(Generation Z).
Millennials' new hyper-connectivity has made social networks and other forms of communication a major
challenge for companies.
The fashion industry targets teenagers due to peer pressure and a desire for modern looks
Branding organizes consumer knowledge about products and services, influencing store image,
atmosphere, and displays. Retail displays can affect established brands' equity, confirming or
disconfirming brand differences.

Akhilendra, S. P., & Muthusamy Aravendan. (2023). A Review on Apparel Fashion Trends, Visual Merchandising and Fashion Branding. Intelligent Information Management, 15(03), 120–159. https://doi.org/10.4236/iim.2023.153007
Oliveira, P.H.P. and Lutterbach, M.F.T. (2020) How Visual Merchandising Can Improve Fashion Retail Stores to Adapt Themselves to Next Generations. Independent Journal of Management & Production, 11, 1980-1193. https://doi.org/10.14807/ijmp.v11i6.1053
Madhavi, S., & Leelavati, T. S. (2013). IMPACT OF VISUAL MERCHANDISING ON CONSUMER BEHAVIOR TOWARDS WOMEN APPAREL. https://www.semanticscholar.org/paper/IMPACT-OF-VISUAL-MERCHANDISING-ON-CONSUMER-BEHAVIOR-Madhavi-
Leelavati/a8282ddfc67d7ef4fc68c962fde15d13627741e9 https://pin.it/3PsUpzZcq
 VISUAL MERCHANDISING DESIGN
ELEMENTS

Arcade Storefront

Angled Storefront

Straight Storefront

Jain, V., Sharma, A., & Narwal, P. (2012). Impact of Visual Merchandising on Consumer Behavior towards Women’s Apparel. International Journal of Research in Management, 5, 106-117. https://www.scirp.org/reference/referencespapers?referenceid=3064137
Iberahim, H., Zulkurnain, N. A. Z., Shah, R. N. S. R. A., & Rosli, S. Q. (2019, June 30). Visual Merchandising and Customers’ Impulse Buying Behavior: A Case of a Fashion Specialty Store. International Journal of Service Management and Sustainability.
https://doi.org/10.24191/ijsms.v4i1.8141
INFLUENCE OF IN-STORE FACTORS

A survey in Sri Lanka was conducted to find out the Visual

Merchandising Design Elements which influence the
purchasing decision of customers. Four brand outlets namely:
Dilly & Carlo, Embark, ODEL and CIB were analysed using
spider-web charts.
Results showed window display, color combination, and
mannequins have the highest impact, while lighting and music
have some influence.

Total responses of the sample of 200 customers from all the four outlets

Wanniachchi, N. H., & Kumara, W. (2016). A Study on Impact of Visual Merchandising on Consumer Buying Behaviour in Clothing Retail Stores. https://www.semanticscholar.org/paper/A-Study-on-Impact-of-Visual-Merchandising-on-Buying-Wanniachchi-
Kumara/d5eda35c48d9df095fe050c1f5645e3c85e57459
 ONLINE VIRTUAL MERCHANDISING ELEMENTS
PATH FINDING ENVIRONMENT PRODUCT DISPLAY MANNER OF PRODUCT
ASSISTANCE FEATURES • Focuses on atmospheric and METHOD PRESENTATION
• Helps users navigate the website sensory features in a website. • Displays individual product • Provides information on product
easily. • Intro-page: Creates a strong images on both websites. images.
• Includes tools like sitemap, first impression of a brand or • Mannequin-cut images • Provides front views, back views,
search engine, and merchandise retailer. displayed on mannequins. and side views.
categorization. • Promotional/Sale Signage: • Mix and match options allow • Some sites use 2D and 3D
• Similar to store layout layouts. Informs consumers about sales customers to customize top methods.
or promotional offers. and bottom items • Detailed views of individual
products

Lennon, S. J., & Ha, Y. (2019, June 1). Online visual merchandising (VMD) of Apparel web sites. www.academia.edu.https://www.academia.edu/20521411/Online_visual_merchandising_VMD_of_apparel_web_sites
IMPORTANT OVM FEATURES
A survey with four leading apparel retailers namely Shoppers Stop, Lifestyle, Fashion at Big Bazar (FBB) and
Reliance Trends , identified and ranked the most important Online Virtual Marketplace (OVM) features of their web
portals, using a non-probability method and 125 customers from each retailer. Some other OMVE can also be
taken under consideration like domain name identification, pop-up messages, site map, search filters, product
descriptions, etc.

Intro Page
Search Filter
Brands Availability
Web Graphics
Web Layout
website Loading Time

Upadhyay, Dr. A. (2019, January 1). A study of visual merchandising elements in fashion retail stores and their impact on customer behaviour. Anusandhan.
https://www.academia.edu/40352934/A_Study_of_Visual_Merchandising_Elements_in_Fashion_Retail_Stores_and_their_Impact_on_Customer_behaviour https://www.intelistyle.com/online-visual-merchandising-what-it-is-and-6-b
RELATIONSHIP BETWEEN VISUAL
MERCHANDISING AND CUSTOMER
BEHAVIOUR
Customer behavior is a crucial aspect of the purchase process, encompassing the buying, acquiring, consuming, and
disposing of goods, services, experiences, and ideas.
Five dimensions are essential for customer satisfaction: merchandise value, store environment, staff interaction,
merchandise variety, and complaint handling.
Consumer purchase intention is influenced by factors like price, perceived quality and value, internal motivations, and
impulses.
Age-related changes in visual perception can significantly impact how individuals perceive and interact with visual
merchandising displays.
Gender purchase intention reflects how men and women differ in their likelihood to buy products.
Visual Merchandising Design (VMD) elements like store layout and displays tailor the retail environment to appeal to
gender preferences, influencing purchase decisions.
For example, Women are emotionally invested in shopping, gather detailed product information, and exhibit varying
satisfaction levels compared to men.
Akhilendra, S. P., & Muthusamy Aravendan. (2023). A Review on Apparel Fashion Trends, Visual Merchandising and Fashion Branding. Intelligent Information Management, 15(03), 120–159. https://doi.org/10.4236/iim.2023.153007
ROLE OF EMOTIONAL STATES IN
INFLUENCING PURCHASE DECISION
The Mehrabian and Russell's Stimulus Organism
Response (SOR) model explains how environmental
stimuli influence an individual's emotional and
behavioral responses. Emotions can range from
excitement to frustration, depending on factors like store
layout, product displays, lighting, colors, and signage. In
a retail setting, store layout, product displays, and
ambiance can affect a shopper's emotions and mindset,
ultimately affecting their purchasing decisions and Mehrabian and Russell SOR Model

behaviors. Emotional states significantly influence

impulsive buying behavior.

Madhavi, S., & Leelavati, T. S. (2013). IMPACT OF VISUAL MERCHANDISING ON CONSUMER BEHAVIOR TOWARDS WOMEN APPAREL. https://www.semanticscholar.org/paper/IMPACT-OF-VISUAL-MERCHANDISING-ON-CONSUMER-BEHAVIOR-Madhavi-
 IMPULSE BUYING
BEHAVIOUR
Impulse buying behavior is a sudden, intense urge
to buy products without considering factors like
need, affordability, or price. It's irrational and
complex, aiming to satisfy multiple needs. Internal
states and environmental stimuli trigger this
behavior. Store goals impact initial store choice
and unplanned buying. Both in-store and out-of-
Factors influencing unplanned or impulse buying
store merchandising can reinforce unplanned
buying.

Mehta, N. P., & Chugan, P. K. (2013, October 1). The Impact of Visual Merchandising on Impulse Buying Behavior of Consumer: A Case from Central Mall of Ahmedabad India. Universal Journal of Management. https://doi.org/10.13189/ujm.2013.010206
Parengkuan, M. W. (2017, January 12). A COMPARATIVE STUDY BETWEEN MALE AND FEMALE PURCHASE INTENTION TOWARD VISUAL MERCHANDISING AT CENTRO BY PARKSON DEPARTMENT STORE MANTOS | Jurnal Berkala Ilmiah Efisiensi.
https://ejournal.unsrat.ac.id/v3/index.php/jbie/article/view/14575
USE OF ARTIFICAL INTELLIGENCE
AND MACHINE LEARNING
• AI and machine learning transform merchandise optimization into a strategy for customer
engagement.
• AI, customer data, new algorithms, and processing power provide predictive capabilities.
Utilize visual merchandising strategies for a strong brand identity.
• Craft a unique shopping experience tailored to individual preferences and expectations.
• Use AI algorithms for real-time product recommendations.
• Transition from traditional methods to AI-driven analysis for better inventory decisions.
• Enable dynamic pricing strategies to attract budget-conscious customers.
• Ensure promotions are beneficial for both consumers and businesses.

Kr, V., Reka, D. P., & Janani, D. V. (2024, April 17). Predictions Of Consumer Behaviour And Their Impact On Visual Merchandising Using Combined Machine Learning Concept. kuey.net. https://doi.org/10.53555/kuey.v30i4.1951
NEW
TECHNOLOGIES

HIGH-TECH
SOUND
ENVIRONMENT

CYBERQUIN

AUGMENTED
REALITY (AR)
CROWDSOURCING

Sampaio, J. P., Zonatti, W. F., Mendizabal-Alvarez, F. J. S., Rossi, G. B., & Baruque-Ramos, J. (2017, January 1). New Technologies Applied to the Fashion Visual Merchandising. Modern Economy. https://doi.org/10.4236/me.2017.83031
 CONCLUSION
Visual merchandising is crucial for both physical and online store, influencing consumer behavior and
purchasing decisions. Factors like fashion trends, branding, store design, and emerging technologies
shape this relationship. Understanding consumer segments, including age, gender, and preferences, is
essential for effective VM strategies. Online Visual Merchandising (OVM) incorporates website design,
product presentation, and pathfinding assistance, while integrating Augmented Reality (AR) and
interactive displays is revolutionizing the VM landscape.

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THANK YOU!