Abstract
Indian retail sector is poised for growth and in-store is going to be the place where customers will take decision to spend or not to spend their money. As for apparel purchase, multiple factors influence the final decision on buying. Through this study, an attempt is made to find out the effect of in-store promotions and its influence on purchase of apparel by customers. Hence, the objectives of the study are set: to find out the customer’s purchase intentions and actual purchase in the context of apparel buying; to find out the most effective in-store promotions that induces purchase of apparel. The study was conducted in two Reliance Trend outlets in Bangalore City, India. 750 customers were intercepted after their shopping with questionnaires. Analyses of data reveal that in-store promotions results in 87 percent of unplanned purchase in apparel buying. 80 per cent of the customers seek to visit the “Best buy†section within the store and instore display of large photographs induce trials of the same design to the tune of 72 per cent. When translated to money terms a customer spends Rs 400 to Rs 1200 on apparel, which was not in the planned list prepared before visiting the store. Hence, in-store promotions are effective means to induce on the spot buying decisions amongst customers especially in apparel purchase.
Highlights
Indian retail industry is the fifth largest in the world
It further adds that according to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney’s forecast, India retail industry is the most promising emerging market for investment
The questionnaire explored the most effective in-store promotions, which induces trial or purchase of apparels. 16 questions were set to five-point scale to elicit information on prior planning of purchase, actual purchase, unplanned purchase, what in-store promotions induced unplanned purchase
Summary
Indian retail industry is the fifth largest in the world. It is one of the fastest growing industries in India. The modern retail formats develop a new set of selling technique introduced to fill the void created by the absence of influential sales persons They further mention that customers identify promotional activities with special areas within the stores. Abratt and Goodey (1990) examined unplanned buying in super markets They point out that these unplanned buying in supermarkets is of interest to manufacturers as well as retailers. Kessler (2004) points out that retailer worldwide are aware of their growing power, but flex their muscles and squeeze margins regularly Brands respond to this in a variety of ways and one of them is in-store marketing and display. Most of the fashion apparel manufacturers and retailers target to younger consumers
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