DISSERATION PPT NIKHIL

A Study On Effect Of Visual Merchandising On Consumer Purchase Intention And Brand

Loyalty In Apparel Industry

Under the guidance of

Prof. Vedha Balaji

Objectives Of My Study

To know how purchase intention gets affected by

VMWhat are those factors of

VM which affects PI the most

To know what is the effect of VM on BL

Variable Under InvestigationVisual Merchandising (Independent)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. It includes the dramatic presentation of merchandise as well as other important, subtle features that create the store’s overall atmosphere. Purchase Intention (Dependent)The likelihood that a consumer will buy a particular product resulting from the interaction of his or her need for it, attitude towards it and perceptions of it and of the company which produces it. Brand Loyalty (Dependent)Brand loyalty can be stated as when consumer/person buy the same brand even if he/she is exposed to some extra benefits (discounts, better display, availability etc.) by some other competitor brand

Sampling1. Sample Size – 250 Respondents, age group of 20 – 40

years2. Sampling Technique - Stratified sampling was being

used for sampling

Female

Profile of the Respondents

Male

Professional Self-Employed Student Un-Employed

20

6

1

15

68

20

12

8

29

20 - 25 Years 25 - 30 Years 30 - 35 Years 35 - 40 Years

Professional Self-Employed Student Un-Employed

27

5

11

18

10

20

3320 - 25 Years 25 - 30 Years 30 - 35 Years 35 - 40 Years

127 123

Analysis Tools Used

1. Chi-Square - This test is to check whether there exists a relation between shopping as not their favourite past time and the impulsive buying behaviour of the respondent.

2. Factor Analysis - This analysis was done for 19 variables of VM. The purpose was to club those variables into few main factors of VM.

3. Multiple Regression – After discovering factors of VM, their individual effect on PI and BL is measured by this analysis.

Data AnalysisIs Shopping Your Favorite Past

Time?

52%

13%

19%

17%

Female

No

No

Yes

Yes

39%

23%

27%

10%

Male 50%

21%

16%

13%

50%

18%

19%

13%

Table 5.3 - Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 17.919a 23 .762

Likelihood Ratio 20.036 23 .640

N of Valid Cases 249

a. 26 cells (54.2%) have expected count less than 5. The minimum expected count is .42.

Chi – Square Results

Shopping as a favorite past time

1. To accept the null hypothesis the level of significance should be more than or equal to 0.05 level of significance. As, in the given table the level of significance calculated is 0.762 which is greater than the maximum level of significance hence the null hypotheses is accepted stating that both the variables i.e. shopping as favourite past time and compulsive buying behaviour is independent

Impulsive Buying Behaviour

Factor Analysis ResultsTo bring out few factors out of various variables contributing toward visual

merchandising

If we look at table 5.5 i.e. rotated component

matrix we can see that the total 19 variables

have bees clubbed on the basis of loadings in 4

main factors. These 4 factors become the main

components of VM in my study.

Music & Light Store Layout

Window Display

Signage & Info

Multi- Regression (VM & PI)

Music & Light

Purchase Intention

Window Display

Purchase Intention

Signage & Info

Purchase Intention

Store layout

Purchase Intention

As the probability of t statistics (3.015) is .(003) which less than minimum level of significance we reject the null hypothesis and state that their exist a significant relationship between the two variables.

As the probability of t statistics (32.8) is (.000) which is less than minimum level of significance we reject the null hypothesis and state that their exist a significant relationship between the two variables.


As the probability of t statistics (-2.433) is (.016) which is less than minimum level of significance we reject the null hypothesis and state that their exist a significant no relationship between the two variables.

Multi- Regression (VM & BL)

Music & Light

Brand Loyalty

Window Display

Brand Loyalty

Signage & Info

Brand Loyalty

Store layout

Brand Loyalty

As the probability of t statistics (1.970) is (.05) which is equal to minimum level of significance we reject the null hypothesis and state that their exist a significant relationship between the two variables.


As the probability of t statistics (-1.434) is (.153) which is greater than minimum level of significance we accept the null hypothesis and state that their exist a significant relationship between the two variables.As the probability of t statistics (2.875) is

(.004) which is less than minimum level of significance we reject the null hypothesis and state that their exist a significant no relationship between the two variables.

Findings 1. Shopping frequency is high among

professional and self-Employed males &

Professional & student females.

2. People who have less interest towards

shopping showcase inclination towards

impulse buying behavior.

3. The most important factors of VM are Music

& Light, Store Layout, Window Display and

Signage and info.

4. Around 62% of ladies said that shopping is

their favorite past time which means with

friends etc. In this case the person’s

attention about the surrounding is less &

visual merchandising can play an important

role in grasping customer’s attention.

Findings

5. People just don’t regard visual

merchandising as a way of promotion or

displaying products rather 50% of people

said that it helps them in making their

shopping decision and it makes shopping

easier for them.

6. VM is more significantly related to purchase

intention of the consumer as compared to

brand loyalty of the person, this clearly

states that VM can make a person buy once

or twice but to make a shift in the choice

against favorite brand VM need to have more

factors apart form display.

Conclusion

1. People who don’t do shopping on regular

basis are more prone towards impulsive buying.

2. Also, visual merchandising affects purchase intention of a person and brand loyalty of a person in different ways.

3. As an influence on purchase intention of a person the merchandise should focus on giving the person more of physical comfort in the store i.e. good layout, music, good use of lights and colours, attractive and latest window display. The person in this case does not want to indulge in much of mental calculations or cognitive decisions.

4. But for influence of VM on persons brand loyalty there has to more of need recognition of the prospect and then showcases those offerings which fill these gaps through signage and info as a part of VM. As here the person is coming again to the same store and the effect of physical factors is less now and he/she is looking for a product in comparison of the brand which they buy regular.

Suggestion

1. Store which focus more on VM and store display etc. should bring their target audience very clear

2. Sought out the purpose of the sale for the brand and for the customer, as this will define the efforts towards VM

3. For a better loyalty from the customer’s side, VM should give proper insights to the consumer and should not be false and hypothetical. If people believe in your product they will buy it again and again.

Thank You

A Project Work ByNikhil Jain |

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DISSERATION PPT NIKHIL

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