The Impact of Visual Merchandising on Impulse Buying Behavior: An Explanatory Study on Customers of Supermarket Chains in the Central Province of Sri Lanka

Abstract

Visual Merchandising is a modern-day technique used by retailers to attract customers by communicating through visual appeal in order to secure their market share amidst intense competition. Scholars have proved that visual merchandising is a powerful tool that can draw customers towards the store and entice impulse purchases. The current study aims to identify the impact of visual merchandising on impulse buying behavior with reference to customers of supermarket chains in the Central Province of Sri Lanka. The underlying concept was presented with a comprehensive review of literature. Primary data was collected through a self-administered questionnaire that was distributed among a sample of 250 respondents from Kandy, Matale and Nuwara-Eliya districts. The sample was formed using the convenience sampling method. The researcher used the SPSS software to analyze the collected data. At the data analysis phase, descriptive statistics and inferential statistics were analyzed and the hypotheses were tested using the correlation and regression analysis in which two hypotheses were accepted and two were rejected. The dependent variable of the study was customers’ impulse buying behavior and the independent variable was visual merchandising. The independent variable consisted of four dimensions namely, window display, store layout, promotional signage and product display. The findings of the study revealed that out of the four dimensions, product display and window display have a significant and positive impact on impulse buying behavior. This study provides an understanding for retailers to focus on specific elements of visual merchandising in order to create a positive impact on customer’s impulse buying behavior. The researcher recommends that the scope of this study could be expanded to investigate both internal and external factors that influence customers’ impulse buying behavior with a combination of quantitative and qualitative research approaches.