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The Impact of Visual Merchandising to
Consumer’s Impulse Buying Behavior
in Padang Shopping Malls
Case study : Basko Grand...
RESEARCH OUTLINE
Chapter 1
Introduction
Chapter 2
LITERATURE
REVIEW
Chapter 4
RESULT AND
ANALYSIS
Chapter 5
CONCLUSION, LI...
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
...
RESEARCH
O B J E C T I V E S
To understand the significant relationship between shopping mall’s customers impulse
buying b...
Theoretical Framework
Impulse
Buying
INDEPENDENT
VARIABLE
DEPENDENT
VARIABLE
Promotional Signage
Window display
Floor Merc...
LITERATURE REVIEW
Shopping Mall
Shopping mall or
shopping centre would refer to
a large retail complex
containing a variet...
LITERATURE REVIEW
Visual merchandising . Impulse Buying
Visual merchandising is one of
technique which drive customer to s...
LITERATURE REVIEW
Floor Merchandising . Window Display
Window display is a
medium which creates first
impression in custom...
LITERATURE REVIEW
Promotional Signage . In-store Mannequin
In-store
Mannequins are
essential for enhancing the appeal
of t...
Hypothesis Development
H1. Shopping mall’s customers who purchase on impulse are
influenced by window displays.
H2. Shoppi...
Questionnaire
RESEARCH METHODOLOGY
Quantitative methodDescriptive
Focus on certain phenomenon in modern
retail store speci...
Data Collection Method
Primary data
Questionnaire
Chapter 3
(Research Methodology)
Data conducted by
mall intercept survey...
Response Rate
Survey Number of
Questionnaire
Distributed 210
Returned 194
Used 180
Response rate 180 x 100%
210
Result 85....
Validity Test
Indicators of Impulse Buying (Y) Loading factor Description
IB1 I go shopping to change my mood 0,750 Valid
...
Reliability Test
Source: developed for this study
No Variable Cronbach's
Alpha
Reliability
1. Impulse Buying 0,769 Reliabl...
Source: developed for this study
Andalas University
International Management Department
Faculty of Economic 2015
Chapter 4...
Multiple Regression Analysis
Y = 0,321+ 0,250X1 + 0,144 X2+ 0,245X3 + 0,204X4 + e
Coefficientsa
Model Unstandardized Coeff...
Hypothesis Testing
Ry R2 Adjusted R
Square
Std. Error of the
Estimate
0.639 0.408 0.394 0,54271
F-test
Coeefficient of Det...
Hypothesis Result
Hyphothesis Sig. Conclusion Justification Basko Grand
Mall
Plaza
Andalas
Rocky
Plaza
H1: Shopping mall’s...
LIMITATION
1. Size of the sample
2. Less diversity of respondents
3. Variables
4. Limitation of instrument
RECOMMENDATION
...
IMPLICATIONS
•Provides an in-depth
understanding of the four
dimensions of visual
merchandising.
•Females are more
attract...
THANK YOU
Andalas University
International Management Department
Faculty of Economic 2015
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The Impact of Visual Merchandising to Consumers Impulse Buying Behavior in Padang Shopping Malls

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

  1. 1. 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.
  2. 2. 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 Andalas University International Management Department Faculty of Economic 2015
  3. 3. 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) Andalas University International Management Department Faculty of Economic 2015
  4. 4. 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) Andalas University International Management Department Faculty of Economic 2015
  5. 5. 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 Andalas University International Management Department Faculty of Economic 2015 Chapter 2 (Literature Review)
  6. 6. 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) Andalas University International Management Department Faculty of Economic 2015 Chapter 2 (Literature Review) 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
  7. 7. 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) Andalas University International Management Department Faculty of Economic 2015 Impulse buying behavior is the purchase that is made without much thinking. (Sahni et al., 2014) Chapter 2 (Literature Review)
  8. 8. 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. (Mehta & Chugan, 2013) Andalas University International Management Department Faculty of Economic 2015 Chapter 2 (Literature Review)
  9. 9. 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. (Mehta & Chugan, 2013) Andalas University International Management Department Faculty of Economic 2015 Chapter 2 (Literature Review)
  10. 10. 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 Andalas University International Management Department Faculty of Economic 2015 Chapter 2 (Literature Review)
  11. 11. Questionnaire RESEARCH METHODOLOGY Quantitative methodDescriptive Focus on certain phenomenon in modern retail store specification on Mall in Padang Andalas University International Management Department Faculty of Economic 2015 Chapter 3 (Research Methodology) Non-probability sampling Quota sampling Purposive sampling Population & Sample 210samples distributed Tabachinik dan Fidel technique
  12. 12. Data Collection Method Primary data Questionnaire Chapter 3 (Research Methodology) Data conducted by mall intercept survey (Mehta & Chugan, 2013) Five Likert Scale Andalas University International Management Department Faculty of Economic 2015 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
  13. 13. Response Rate Survey Number of Questionnaire Distributed 210 Returned 194 Used 180 Response rate 180 x 100% 210 Result 85.71% Respondents Characteristic Andalas University International Management Department Faculty of Economic 2015 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
  14. 14. 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 Andalas University International Management Department Faculty of Economic 2015 Chapter 4 (Result & Analysis) 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
  15. 15. 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 Andalas University International Management Department Faculty of Economic 2015 Chapter 4 (Result & Analysis) NormalityTest Source: developed for this study Normal data
  16. 16. Source: developed for this study Andalas University International Management Department Faculty of Economic 2015 Chapter 4 (Result & Analysis) Heteroscedasticity Test No Variable Tolerance VIF Explanation 1 Window display 0.756 1.323 No multicollinearity 2 Floor Merchandising 0.702 1.424 No multicollinearity 3 In-store Mannequin 0.625 1.600 No multicollinearity 4 Promotional Signage 0.716 1.396 No multicollinearity Multicollinearity Test Source: developed for this study
  17. 17. 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 Source: developed for this study 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). Andalas University International Management Department Faculty of Economic 2015 Chapter 4 (Result & Analysis)
  18. 18. 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 Andalas University International Management Department Faculty of Economic 2015 Chapter 4 (Result & Analysis) 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
  19. 19. 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 H2: Shopping mall’s customers who purchase on impulse are influenced by floor merchandising. 0,035 Supported Mehta & Chugan (2012) 0,278 0,313 0,264 H3: Shopping mall’s customers who purchase on impulse are influenced by in-store mannequin. 0,004 Supported (Lanjewar, 2014)) 0,053 0,010 0,779 H4: Shopping mall’s customers who purchase on impulse are influenced by 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) Andalas University International Management Department Faculty of Economic 2015 Comparison of 3 malls
  20. 20. 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 Andalas University International Management Department Faculty of Economic 2015 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 .
  21. 21. IMPLICATIONS •Provides an in-depth understanding of the four dimensions of visual merchandising. •Females are more attractively buy products on impulse. Andalas University International Management Department Faculty of Economic 2015 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
  22. 22. THANK YOU Andalas University International Management Department Faculty of Economic 2015

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