The Impact of Visual Merchandising to Consumers Impulse Buying Behavior in Padang Shopping Malls

The Impact of Visual Merchandising to

Consumer’s Impulse Buying Behavior

in Padang Shopping Malls

Case study : Basko Grand Mall Padang, Plaza Andalas Padang and Rocky Plaza Padang

Andalas University International Management Department Faculty of Economic 2015

RAHMA JAMILA FERDINAL (1110524018)

Supervisor : Dr. Sari Lenggogeni, SE. MM.

RESEARCH OUTLINE

Chapter 1

Introduction

Chapter 2

LITERATURE

REVIEW

Chapter 4

RESULT AND

ANALYSIS

Chapter 5 CONCLUSION, LIMITATION,

RECOMMENDATION AND

IMPLICATIONS OF

RESEARCH

Chapter 3

Research Method


R E S E A R C H B A C K G R O U N D

Modern retail market (Mall)

Research Attractiveness Impact of visual merchandising to

customers impulse buying behavior.

People life style on doing shopping

Exterior factors/Visual merchandising

Several activities, window shopping, hang out, culinary, having fun

Impulse buying behavior

Chapter 1 (Introduction)


RESEARCH O B J E C T I V E S

To understand the significant relationship between shopping mall’s customers impulse buying behavior and window display.

To understand the significant relationship between shopping mall’s customers impulse buying behavior and in-store mannequin.

To understand the significant relationship between shopping mall’s customers impulse buying behavior and floor merchandising.

To investigate the difference of impact on visual merchandising between male and female shopping mall’s customer impulse buying behavior.

To understand the significant relationship between shopping mall’s customers impulse buying behavior and promotional signage.

To see propensity of visual merchandising impacting customers impulse buying behavior on each malls.

Chapter 1 (Introduction)


Theoretical Framework

Impulse

Buying

INDEPENDENT

VARIABLE

DEPENDENT

VARIABLE

Promotional Signage

Window display

Floor Merchandise

Gender Comparison (Male are more likely influenced by visual

merchandising compare to female on impulse

buying)

Visual Merchandising factor

In-store Mannequin

H1

H2

H3

H4

H5


Chapter 2 (Literature Review)

LITERATURE REVIEW Shopping Mall

Shopping mall or

shopping centre would refer to

a large retail complex

containing a variety of stores

and often restaurants and

other business establishment

housed in a series of connected

or adjacent buildings or in a

single large building

(Andrew Murr, 2012)



Name of Mall Explanation

Basko Grand Mall

Padang

Started in 1995, integrated with Premier

Basko Hotel. Located at Jl.Prof Dr.

Hamka No. 2A Padang.

Plaza Andalas

Padang

Operated in 2006. The larger retail in this

mall is Ramayana Department Store.

Located at Jalan Pemuda No. 15 Padang

Rocky Plaza Padang Itegrated with Rocky Hotel. The biggest

retail in this mall is Suzuya. Located at

Jl. Permindo No. 40 Padang,West

Sumatra

LITERATURE REVIEW Visual merchandising . Impulse Buying

Visual merchandising is one of

technique which drive customer to spend

more their time and feel joy of the place

when they visit a store in purpose to

purchase some goods.

(S Soundhariya & S Sathyan, 2015)


Impulse buying behavior is

the purchase that is made

without much thinking. (Sahni et al., 2014)


LITERATURE REVIEW

Floor Merchandising . Window Display

Window display is a

medium which creates first impression in customer’s mind to enter the store.

(Mehta & Chugan, 2013)

Floor merchandising is

one of major dimension of visual

merchandising to attract customer. It

has a major role in making memorable experience to the customer.




LITERATURE REVIEW

Promotional Signage . In-store Mannequin

In-store

Mannequins are

essential for enhancing the appeal of the merchandise, making it easier for customers to visualize

how clothing will look on them.

(Lanjewar, 2014)

Promotional

signage is visual product

identification, the brand concept and the means of establishing the relationship between the consumer and the product to generate the sales, establish closer communication with consumer and direct interaction.




Hypothesis Development

H1. Shopping mall’s customers who purchase on impulse are influenced by window displays.

H2. Shopping mall’s customers who purchase on impulse are influenced by floor merchandising.

H3. Shopping mall’s customers who purchase on impulse are influenced by In-store mannequin.

H4. Shopping mall’s customers who purchase on impulse are influenced by promotional signage.

H5. Male are more likely influenced by visual merchandising compare to female on impulse buying



Questionnaire

RESEARCH METHODOLOGY

Quantitative method Descriptive Focus on certain phenomenon in modern

retail store specification on Mall in Padang


Chapter 3 (Research Methodology)

Non-probability sampling

Quota sampling Purposive sampling

Population & Sample

210 samples distributed

Tabachinik dan Fidel technique

Data Collection Method

Primary data Questionnaire

Chapter 3 (Research Methodology)

Data conducted by

mall intercept survey


Five Likert Scale


No Scale Score

1 Frequently 5

2 Often 4

3 Sometimes 3

4 Rarely 2

5 Never 1

Variable

Independent Variable

Window Display as X1

Floor Merchandise as X2

In-store Mannequin as X3

Promotional Signage as X4

Dependent

Variable

Customer’s Impulse Buying as Y

Response Rate

Survey Number of

Questionnaire

Distributed 210

Returned 194

Used 180

Response rate 180 x 100% 210

Result 85.71%

Respondents Characteristic


Chapter 4 (Result & Analysis)

50% male

50% female

60% 20-24 years old

2.2% >55 years old

56.7% SHS

1.1% Master

57.8% Student

10% Entrepreneur & Other

50.6% < 1000.000

1.1% > 5000.000

Validity Test Indicators of Impulse Buying (Y) Loading factor Description

IB1 I go shopping to change my mood 0,750 Valid

IB2 I feel a sense of excitement when I make an impulse purchase 0,676 Valid

IB3 After I make an impulse purchase I feel regret -0,437 Not Valid

IB4 I have difficulty controlling my urge to buy when I see a good offer 0,819 Valid

IB5 When I see a good deal I tend to buy more than I intended to buy 0,777 Valid

Indicators of Window Display (X1)

WD1 I feel compelled to enter the store when I see an interesting window display 0,918 Valid

WD2 I tend to enter the store when I am attracted by an eye-catching window display 0,918 Valid

Indicators of Floor Merchandising (X2)

FM1 I tend to try on clothing that catches my eye when I pass by 0,887 Valid

FM2 When I see clothing that catches my eye I tend to try it 0,889 Valid

FM3 When I walk along the isle I tend to look through clothing close to me 0,593 Valid



Indicators of In-store mannequin

IM1 I get an idea of what to buy after looking through in store form/mannequin display 0,362 Valid

IM2 When I see clothing featuring a new style or design on display I tend to buy it 0,515 Valid

IM3 When I see clothing that I like on in-store form/mannequin display, I tend to buy it 0,454 Valid

IM4 I tend to rely on store displays when I make a decision to purchase clothing 0,276 Valid Indicators of Impulse Buying

PS1 When I see a special promotion sign, I go to look at that clothing 0,774 Valid

PS2 If I see an interesting promotional offer on in-store signs I tend to buy 0,836 Valid

PS3 Sales sign entice me to look through the clothing 0,825 Valid

PS4 I am more likely to make an unintended purchase if the clothing has a sale sign 0,673 Valid

Reliability Test

Source: developed for this study

No

Variable

Cronbach's

Alpha

Reliability

1. Impulse Buying 0,769 Reliable

2. Window

Display 0,814

Very

Reliable

3. Floor

Merchandising 0,713 Reliable

4. In-store

Mannequin 0,724 Reliable

5. Promotional

Signage 0,769 Reliable



Normality Test


Normal data




Heteroscedasticity Test

No Variable Tolerance VIF Explanation

1 Window display

0.756 1.323 No multicollinearity

2 Floor Merchandising


3 In-store Mannequin


4 Promotional Signage


Multicollinearity Test


Multiple Regression Analysis

Y = 0,321+ 0,250X1 + 0,144 X2+ 0,245X3 + 0,204X4 + e

Coefficientsa

Model Unstandardized Coefficients Standardized Coefficients T Sig.

B Std. Error Beta

(Constant)

X1

X2

X3

X4

0,321 0,254 1,264 0,208

0,250 0,058 0,288 4,302 0,000

0,144 0,068 0,147 2,123 0,035

0,245 0,084 0,215 2,917 0,004

0,204 0,071 0,199 2,893 0,004

a. Dependent Variable: Y


Description: Y = Impulse Buying (IB) X1= Window Display (WD) X2= Floor Merchandising (FM)

X3 = In-store Mannequin (IM) X4= Promotional Signage (PS) e = Error (other than the independent variable regression model).



Hypothesis Testing

Ry R2 Adjusted R

Square Std. Error of the

Estimate

0.639 0.408 0.394 0,54271

F-test

Coeefficient of Determination



Table 4.22

ANOVAa

Model Sum of

Squares

df Mean

Square

F Sig.

1

Regression 35,519 4 8,880 30,149 0,000b

Residual 51,543 175 0,295

Total 87,062 179

Gender Comparison

Comparison of Male and Female

Gender N Mean

Impulse Buying M 90 2,8978

F 90 3,1889

Window Display M 90 3,1667

F 90 3,6278

Floor Merchandising M 90 3,0481

F 90 3,1333

In-store Mannequin M 90 2,9667

F 90 3,2861

Promotional Signage M 90 3,1083

F 90 3,4028

Hypothesis Result

Hyphothesis Sig. Conclusion Justification Basko Grand

Mall

Plaza

Andalas

Rocky

Plaza

H1: Shopping mall’s

customers who purchase on

impulse are influenced by

window displays.

0,000 Supported

Bhatti and Latif

(2014) 0,036 0,023 0,014




floor merchandising.

0,035 Supported

Mehta &

Chugan (2012) 0,278 0,313 0,264




in-store mannequin.

0,004 Supported

(Lanjewar,

2014)) 0,053 0,010 0,779




promotional signage.

0,004 Supported

(Khandai et al.,

2012) 0,003 0,809 0,080

H5: Male are more likely

influenced by visual

merchandising compare to

female on impulse buying

Not

Supported* (Cho, Ching, &

Luong, 2014)


Comparison of 3 malls

LIMITATION

1. Size of the sample

2. Less diversity of respondents

3. Variables

4. Limitation of instrument

RECOMMENDATION

1. Investigated the effect of other

independent variables

2. More sample 3. Longer period in distribute

questioners


Chapter 5 (CONCLUSION, LIMITATION,

RECOMMENDATION AND IMPLICATIONS OF

RESEARCH )

CONCLUSION

In-store mannequin is the highest influence tools to make customer doing impulse buying.

Retailers should be careful on designing

floor merchandising because more or less impact badly to the store.

Attractive and interesting dimensions of

visual merchandising to create more impulse buying on mall and gain more income .

IMPLICATIONS

•Provides an in-depth understanding of the four dimensions of visual merchandising.

•Females are more attractively buy products on impulse.


Chapter 5 (CONCLUSION, LIMITATION,

RECOMMENDATION AND IMPLICATIONS OF

RESEARCH )

Implication for theory . Implication for Practice

• Mall’s management is suggested to have more attentions

to attract people by attractive visual merchandising.

• floor merchandising should get different attentions

because when floor merchandising was performed too

much on customers, they either avoid to listen to or feel

disturbed.

• Mall’s management better to concern on attractive visual

merchandising on store which more visited by female

customer.

•Basko Grand Mall Padang is suggested to keep their

attention on promotional signage due to the results

present this dimension is really impactful to their

customers

THANK YOU


Documents

The Impact of Visual Merchandising to Consumers Impulse Buying Behavior in Padang Shopping Malls