In the recent years, scholars noted increased role and power of the visual merchandising on consumer behaviour pertaining to luxury purchases in the retail market. According to Diamond & Diamond (2010), visual merchandising should be considered as an example of the presentation of the merchandise developed with a purpose to attract new customers and enhance their desire to purchase items produced by specific brand. Visual merchandising is perceived by scholars as an effective instrument supporting buying impulse of the consumers (Kim 2003). Visual merchandising is found as an integral element in fashion retailing, which reflects actual look and idea of the brand in support of the development of the brand awareness in the retail market (Gudonaviciene & Alijosiene 2015). The notion of the visual merchandising is closely connected by scholars with impulse purchasing (Khakimdjanova & Park 2004). Impulse purchasing is found as immediate and unintentional action of the individual to purchase different items (Kim 2008).
Law, Wong and Yip (2012) demonstrate that effective visual presentation is covered with term “atmosphere” that surrounds customer during shopping activities. In this respect, creation of inspiring windows represents an effective instrument to draw attention of the customers and inspire them to purchase products or services of the brand (Hoyle 2003). In support of this statement, Mehta and Chugan (2012) emphasise that importance of visual design is present in retail market as it extends to the role of retail location, atmosphere, service scale and selection of the design. Moreover, Brakus, Schmitt and Zarantonello (2009) state that consumers are looking for availability of visually warm store environment. Maier (2009) asserts that visual merchandising should be included into business strategy of every company in view of the importance of visual representation of the company supporting intention of the organisation to maintain specific look of the shop. Scholar notes that reliance on good visual marketing plan will contribute to brand image of the organisation in the target market (Maier 2009). Following this development, Pegler (2006) notes that visual merchandising should be considered a presentation of merchandising at its best features including color coordination and self – explanatory instruments. According to this statement, presentation of the product at its best implies reflection of all qualities of the item focusing on the competitive advantage of the style and capabilities of the product. At the same time, Topete Hill (2012) asserts that visual merchandising is not limited to the arrangement and allocation of the products as it serves preferably as visual persuasive technique approaching to targeted audience, location of the products and effective brand image. Furthermore, Topete Hill (2012) highlights that visual merchandising is present in retail industry where marketers intend to draw attention of the customers so to encourage them to enter store and convince to purchase something.
2.2 Role of visual merchandising in retail market and challenges, related to use of this instrument
According to the researchers of Kangan Institute (2018), visual merchandising performs an essential role in the development of the retail store’s strategy. The purpose of the reliance on the visual merchandising is to maximise the aesthetic appeal to the appearance of the product in reference to the overall volume of sales in the market. In case of better preparation of the visual merchandising, this instrument may contribute to better awareness of the brand in the market in support of the brand loyalty elaboration. At the same time, the main purpose of use of the visual merchandising is connected to the intention of the brand managers to connect customers with the brand. The outcome of the effective visual merchandising will be reflected in increased sales and returns for the brand (Kangan Institute 2018). Veo (2018) states that benefits of the visual merchandising are undeniable, while the most companies tend to rely on new dimension as online visual merchandising in order to keep pace with technological developments. In support of this statement, one may agree that the role of visual merchandising is reflected in part it serves the role of essential instrument of communication for retailer and producer of specific products in satisfaction of the demand of the customers. According to Jigna et al. (2013), rise of the competition between retailers leads to better utilization of visual merchandising that strives to increase attractiveness of the products for consumers and maintain desirability of the items. Moreover, impulse behaviour has become an inseparable part of consumer’s behaviour that stands to the development of effective strategic marketing plan (Jigna et. al 2013).
Considering role of the visual merchandising in the elaboration of the impulse purchases, one should be aware of the findings received by Jain (2011). Namely, visual merchandising represents store exterior and interior of the physical store. Furthermore, store exterior extends to window display, facade and retail premises of the physical store. Jain (2011) asserts that physical attractiveness of the store has a predominant effect on the intention of the consumer to purchase products in the luxury retail market. In addition, this study is aligned with the findings of the other scholars in part that proper visual merchandising encourages consumers to relax and experience pleasure from shopping without stressful situations (Diamond & Diamond 2010). This statement should be understood in a manner that consumers usually face stress if they have to conduct impulse purchases, while visual merchandising is performed in such a manner that consumers are interested to have any item of the brand completing visual objects (Diamond & Diamond 2010).
Jain (2011) demonstrates that visual merchandising represents an innovative mean of communication between company and customers, where organisation shares its fashion value and quality image to the current consumers and potential customers. In this respect, visual merchandising performs an educational role for the consumer as it reminds target audience regarding quality of the products, their purposes and benefits of use. In the meantime, scholars report that the use of the visual merchandising is featured with rise of significant number of challenges related to the convertion of the footfalls into real sales of the products (Gudonavičienė and Alijošienė, 2015). In contrast, Veo (2018) stands to the position that merchandising primary objective is to assist with location and identification of new products that should satisfy needs and demands of the consumers through elaboration of respective design for the products. Availability of immense competition in the retail market and visual merchandising contributes to the creation of the distinctive advantage for the products and respective augmenting of the sales process (Gudonavičienė and Alijošienė, 2015). However, the majority of the scholars still have diverse approaches to the reflection of the concept of visual merchandising. This statement implies that similarly to Gudonavičienė and Alijošienė (2015), visual merchandising is regarded solely as the instrument of communication between customers and brand, while effect of this tool over purchasing behaviour should be further investigated.
According to Kapferer and Bastein (2009), presence of certain retail store atmospherics may influence shopper behaviour. Scholars report findings of their study where consumers remembered occasions when specific atmosphere encouraged consumers to purchase products so that they accept the fact of direct impact of atmosphere on shopping behaviour of the consumers in the retail market. Bustos (2004) notes several cases when retailers undervalue importance of visual merchandising and power of window presentation in designing of the stores. According to Bustos (2004), use of creative flooring, backdrops may lead to the rising attraction of the physical stores. Considering aspects of visual merchandising, Yun and Good (2007) prepared case study focusing on the discussion of separate elements of the visual merchandising encouraging people to purchase products in the retail market. According to Yun and Good (2007), even store cleanliness may impact willingness of the customers to shop as well as it will effect frequency of the purchases of the consumers in certain store. Furthermore, Gakanayake et al. (2011) identified power of such store components as colouring and lighting. Scholars remind on impact of psychological and physiological effects of the colours that should be valued in preparation of visual merchandising in retail market. Crafting of effective visual merchandising strategy ensures elaboration of positive store atmosphere. This instrument can facilitate better communication between brand managers and shoppers (Kerfoot et al. 2002). Moreover, visual reflection of the brand image to the customers may be achieved vial visual merchandising tools providing an opportunity to reflect visual portrait of the brand. Furthermore, Clarke, Perry and Denson (2012) insist that company will not achieve creation of total store experience without proper use of visual merchandising. In this respect, scholars advise to combine intangible store atmospheric elements with tangible physical aspects (Clarke, Perry and Denson 2012). Importance of visual merchandising has been widely assessed by Garvey (2010). According to scholar, visual merchandising represents a tool presenting perception of the brand about feelings of the consumer during interaction with brand. Albeit, Storms (2006) explains that use of such instruments as interior decoration may contribute to effective visual merchandising. In this respect, visual merchandising allows to form first impression of the consumer regarding brand, since the eye is the connection between mind and heart of the consumer to the external objects. Therefore, visual merchandising ensures introduction of the product in respective style and colour (Garvey 2010). In support of this statement, Storms (2006) insists that use of visual merchandising provides customer with an opportunity to take quick purchase decisions. In turn, Dawes (2008) has an extended attitude towards importance of visual merchandising (VM) in retail market. He states that proper use of VM is a source of external impact on customer’s mind and perception. Meanwhile, according to Jain (2011), the role of proper integration of visual merchandising elements in business growth and development of the brand lies in creation of connection between customer and company. Hence, the quality of store front is a major factor affecting first perception of the customer. In this respect, store front can not be compromised. Scholar asserts that exterior appearance of the store announces perspectives that are hidden inside physical store of the brand (Jain 2011).
Analysis of the available studies evidences that most scholars focus on the discussion of the essence and elements of visual merchandising, effectiveness of merchandising strategies in fashion retailing. However, Krishnan and Venkatesh (2008) addressed this limitation in the discussion of the nature of visual merchandising and considered current challenges of merchandising strategies that are applied by the brand managers in fashion retailing. Scholars insist that changing demographics and consumer taste continue to hold positions of primary challenges to effective implementation and use of visual merchandising. Furthermore, operation of fashion retailing industry has been found by scholars as unpredictable one in view of the fact that marketers struggle to confirm that specific fashion trend will be successful. In this respect, Krishnan and Venkatesh (2008) affirm that one of the instruments available for retailer is to respond in timely manner to shifting patterns in decision making process of the customer and his demands. Therefore, visual merchandising aims to solve several issues arising before owner and manager of the physical stores of specific company in retail market, while it is effectiveness can not be predicted.
The role of visual merchandising is confirmed by Kerfoot et al. (2003) in part it differentiates retailers and competitors in the retail market. Scholar points out that path to successful performance and operation in the retail market should be aligned with use of specific visual merchandising (Kerfoot et al. 2003). In addition to this fact, scholar draww attention that within modern business framework, brands have better variety of techniques to be used for promotion campaigns as visual merchandising is not limited to apparel display or similar techniques. In turn, he stresses that one common technique, that may be popular among numerous brands, will become useless in the nearest future in reference to changing patterns and needs of the customers in the retail market.
Overview of the available studies reaffirms importance of the visual merchandising for brand promotion and awareness, while only few scholars pay attention to the discussion of the challenges related to visual merchandising. In particular, Kerfoot et al. (2003) have listed the biggest challenges for effective visual merchandising as constant rise of costs of materials; digital medium; limited budgets for technology integrations; lack of available talent; price conflicts for trademarks and signs; search of creative solutions and others. Summarising available studies on the nature and components of visual merchandising, one may trace some tendencies prevailing in research findings of the scholars. In particular, visual merchandising assists with maintenance of the overall appearance and image of the retail stores in consumers’ mind. In addition, visual merchandising concentrates on the examination of different aspects of the customers, including sensory pleasure, affective pleasure and cognitive pleasure. In turn, only limited number of studies focus on the discussion of the impact of visual merchandising over the impulse behaviour of the customers. In this regard, future studies should contain empirical evidence on the extent of interdependence between consumer behaviour of the customers in luxury retail market and use of visual merchandising techniques.
2.3 Impulsive buying behavior
In the recent years, Kim (2003) elaborated model of impulse buying process (Figure 1). According to scholar, the impulse buying process initiated with search of the products and collection of the information regarding performance of the brand. When browsing is completed, consumers have to purchase products in order to respond to stimuli developed by the brand. At this stage, customers tend to make buying decision without any evaluation stage and information data collection. Besides, Kim (2003) reminds that the impulse buying behaviour should be evaluated at the final staged of the post – evaluation experience. The nature of the impulse behaviour suggests that the consumers tend to purchase products without evaluating of such important factors as needs, prices, affordability and others.
According to the information presented in Figure 1, this model should perform the role of new concept supporting connections between online visual merchandising and impulse buying. Meanwhile, Bayley and Nancarrow (1998) evidence that the impulse buying should be considered a sudden or unplanned behaviour of the customer to conduct hasty decision and purchase product. In this case, customer does not look at alternative options and available choices as he is concerned to accomplish impulse purchase. In turn, Jardoe and McDaniel (1987) specify that impulsive buying behaviour in retail stores was a common feature in purchasing intention and behaviour of the customers that was traced by the managers of the companies in physical stores. In this respect, in – store browsing stimulates intention of the customer to conduct purchases (Madhavi and Leelavati, 2013). Hence, scholars agree that impulse buying performs the role of the response to the exposure of the customer to in – store stimuli (Gudonavičienė and Alijošienė, 2015). In contrast, Banerjee and Saha’s (2012) performed study where they discussed role of the unplanned purchasing triggers in the retail industry as to the shopping frequency and gender of the consumer. Earlier study on the same subject was accomplished by Maria et al. (2010) in order to determine impact of visual merchandising on the performance of shopping centres, their rise and popularity in terms of visits of the customers. Maria et al. (2010) identified availability of the dependent variable for the paper where visual merchandising was connected to the store attributes affecting decision of the consumer to purchase products in the luxury retail segment.
Analysis of the notion of impulse behaviour evidences availability of certain divergence among scholars as to the concept of impulse buying (Kalla & Arrora 2011). In fact, researchers agree in part that speed of buying decision features impulse behaviour as consumers does not look at the alternative options available. Although, Jieyon (2003) stresses importance of connection between buying decision process that is shaped by social and marketing influences including visual merchandising. Findings of Jieyon (2003) evidence that the marketing influences including visual merchandising options have predominant effect over purchasing behaviour of the customer. In addition, Kalla and Arora (2011) state that consumer’s impulse buying process starts with browsing of the stores. This stage takes place before customer enters purchase and post – purchase stage (Kalla and Arora 2011). Hence, Vohs and Faber (2007) only reaffirm the fact that touching, tasting and physical proximity of the products bolsters intention of the person to conduct impulse purchase. Review of these studies evidences strong connection between impulse behaviour and visual merchandising of physical stores in retail market.
According to Mehta and Chugan (2013), in case of impulse behaviour customers do not consider effects of purchase. When conducting impulse purchase, customers are interested to relish urge of buying specific product. This specificity of impulse buying behaviour is different from traditional buying in part that ordinary purchases aim to solve fix certain problem for the customer. In addition, impulse behaviour is regarded as irrational form of behaviour, when person does not have sufficient management over his actions. However, recent studies indicate that impulse behaviour represents a sophisticated subject that meets diverse needs of the consumer. Moreover, there is a list of triggers, internal states and environmental stimuli that cause impulse purchases. Based on this information, a connection between impulse behaviour and visual merchandising is evident as marketers can manage environmental sensory stimuli including atmospheric objects in physical shops (Quartier, Vanrie & Van Cleempoel 2009). In support of this statement, one should be aware of the fact that the notion of impulse behaviour is widely investigated by scholars in reference to the actual consumer behaviour in the retail industry. However, consumer behaviour is not considered significantly by the researchers as to the actions of the luxury customers in the retail industry. Moreover, it should be noted that analysis of the selected studies on the roots of impulse behaviour shows no connection between geographical location of the customer and behaviour of the consumer as to the promotional practices. In the meantime, Quartier, Vanrie & Van Cleempoel (2009) demonstrate that impulse behaviour of the customers can be hardly changed by such factors as online information systems, telemarketing. Although, same scholars found that impulse behaviour may arise in response to specific slogans developed by the brand managers in demand for specific action from the customer (Quartier, Vanrie & Van Cleempoel 2009). At the same time, scholars draw attention to the fact that in most studies impulse buying behaviour is examined jointly with price discounts, sales promotions, sampling. This statement confirms that researchers did not pay a lot of attention to the evaluation of the role of visual merchandising in support of the rise of impulse buying behaviour as attention was paid to numerous other external factors. Albeit, Quartier, Vanrie & Van Cleempoel (2009) show that researchers aimed to prove connection between several internal factors, including gender and age of the individual, to the rise of impulse behaviour instead of searching for new empirical evidence on the connection between visual machining and impulse behaviour of the customers in the retail market.
Establishing wider scope of impulse behaviour has been achieved by Lee and Kacen (2008) in the study focused on the determination of the cultural influences on consumer satisfaction level. Lee and Kacen (2008) suggest that numerous factors may play important role in the development of impulsive purchasing behaviour including mood of the individual, actual trait impulsiveness, classification of the product, self – identity and cultural orientation. The latest element can be regarded a prioritized element in the framework of impulsive behaviour of the customers in Dubai, while overview of the available studies indicates rising interest of the scholars to the interpretation of the consumer behaviour in the developing regions. Although, Dubai does not fall in the range of the developing countries so that investigation of impulse behaviour in the retail market should be subject for further consideration. Meanwhile, Lee and Kacen (2008) state that more researches are needed for explanation of this social phenomenon in the developed and developing regions including the United Kingdom of Saudi Arabia.
Regardless the fact that several studies have been accomplished regarding search of the connection between impulse behaviour and window displays, floor merchandising and other elements of visual merchandising, only few of them suggest a presence of pivotal connection between impulse behaviour and visual merchandising. In particular, Mehta and Chugan (2013) reaffirm that every brand should deliberately select elements in range of visual merchandising techniques in order to spur intention of the consumer to purchase products and stay loyal to the quality of the services of the company. In this respect, scholars insist that selection of the techniques varies between companies with regard to their purposes and values established in business strategies. Therefore, scholars recommend that use of visual merchandising should be featured with creative approach showing usefulness and effectiveness of these marketing tools for interpretation consumers’ behaviour as element of impulse buying.
2.4 Role of Visual Merchandising in Luxury Retail
Defining the role of the visual merchandising in the luxury retail market is considered in this paper through investigation of the models of consumption motives and theories. Wiedmann et al. (2007) suggests that the consumers’ luxury consumption enhances social value, individual value and functional value in addition to the financial value of the products. Wiedmann et al. (2007) criticise that the quality of the products and usability value serve the role of confirmation of the actual positioning of the brand in luxury segment. According to Abildsnes (2016), the power of visual merchandising should be considered in reference to the experience of such luxury brands as Bottega Veneta, Hugo Boss, Louis Vuitton. Abildnes (2016) states that entering physical luxury store is quite different from ordinary retail market as consumer enjoys contrasting shopping experience. In particular, the physical luxury store will definitely have carefully selected products that are placed in dressed window displays in response to the brand value and context of the store. Abildnres (2016) stresses that entering physical store, where visual merchandising is respected, allows to customer to share “feeling like a million dollars” (Abildnes 2016).
According to scholars, considering the role of visual merchandising in luxury retail requires proper understanding of consumer behaviour. Topete Hill (2012) emphasises that consumer in luxury retail can be classified from the economical factors taking into account also status of the individual and his intention to pay for respective brands and services. Moreover, scholar insists that understanding behaviour of the customer in luxury retail market can be explained through three types of benefits to be received after purchase. In particular, functional, emotional and expressive nature of the purchase in luxury segment. Following this statement, it appears the luxury brand customer aims to enjoy that three mentioned benefits will satisfy needs and expectations of the consumers. In addition to this statement, Topete Hill (2012) asserts that luxury consumers purchase not only tangible products as they are also looking for receipt of new package of experiences, feelings and identities that constitute product, services and brand’s features. Moreover, interpretation of the behaviour of the luxury consumer in reference to impulse purchase is needed because motives of this category of consumers is different from ordinary group of the customers. Luxury consumers do not purchase luxury fashion products as this intention does not ground on the necessity to fuel basic needs. In this respect, one may trace main position of the scholars in discussion of the behaviour of the luxury consumers in part that luxury customers are aware of their tastes and preferences. This statement implies that purchase of luxury products is contingent upon desire of the individual to define own style needs. According to Topete Hill (2012), the most powerful example of the role of visual merchandising on consumer behaviour in luxury segment is referred to performance of Jimmy Choo. Topete Hill (2012) completed case study research on the marketing strategy of the brand and found that luxury retailers rely on use of some traditional instruments including “repetition” test, “the icon” test, “color” test.
According to Zhan and He (2012) consumers related luxury brands with respective functional benefits. When customer decided to purchase luxury product, he believes that it performs role of the long – term investment which leads to preservation of functional value. In support of this statement, Zhan and He (2012) state that consumers prefer to purchase luxury brands in order to meet their functional benefits in substitution of psychological necessities. Moreover, Joy et al. (2014) found that store atmospherics and store environment affects consumers’ perceived benefits of luxury purchasing and perceptions. Moreover, Joy et al. (2014) classified instruments falling with the scope of visual merchandising display in luxury sphere into several categories including display fixtures, fixture materials, display structure, organisation and technique. In contrast, only Kerfoot et al. (2003) made significant progress with determination of the link between certain visual merchandising cues and consumers’ purchase motivations. In order to succeed in this dimension, Kerfoot et al. (2003) applied case study analysis when females attended luxury brand shops and considered all factors affecting consumer behaviour. As a result of the investigation, participants ascertained availability of numerous items that were used by the managers in visual design of the store including marble and wood in staircases, specific lightning and other instruments. In the meantime, Kerfoot et al. (2003) stress that numerous visual display objects contribute to development of specific perception of the brand, while weak connection has been found between impulse behaviour of the consumers in luxury segment and visual merchandising. In contrast to this assumption, marketing literature including findings received by Shukla and Purani (2012) suggest that use of pedestal blocks, glass display cases, brass trims and museological presentation techniques may affect consumers’ perceptions of luxury as well as support intention of the consumer to purchase specific product. According to Shukla and Purani (2012), store environment elements may serve the role of the background to the elaboration of consumers’ emotional and cognitive state supporting purchase intentions of the customers.
In contrast to abovementioned theory about roots of consumer purchase of luxury brands, several scholars agree on the fact that behaviour of the customer in luxury segment is featured with specific type of the risk (Tsiros and Heilman 2005). According to scholars, behaviour of the consumer in purchase of the regular goods should be compared to the performance of the customer in luxury segment (Tsiros and Heilman 2005). They state that buying luxury brands aims to meet mostly psychological motives of the individual, while they suggest that construct of personal risk is critical for determination of the purchase intentions for luxury products. At the same time, Chen and Barnes (2007) explain effect of visual merchandising display on purchase intentions via inference theory and risk – taking theory. According to these scholars, online retailing and physical store environment may affect consumer’s purchase intentions for a luxury brand through determination of the perceived personal risk for considered brand selection.
This literature review analysis confirms that scholars focus preferably on the discussion of the role of visual merchandising in fashion industry in general. Among all studies selected for this literature review analysis, only Kerfoot et al. (2003) stress that visual merchandising is important in case producers decide to use display materials in luxury fashion retailing as glass tables or wooden hangers. However, the role of the visual merchandising over impulse behaviour requires deeper investigation by researchers so to prove that this marketing technique can be used as part of external factor affecting impulse behaviour of the luxury customers in different jurisdictions. Therefore, researchers may enhance scope of investigation to the importance of cultural values in creation of visual merchandising objects that are further used in the luxury stores. According to Kerfoot et al. (2013), the importance of visual merchandising in luxury retail should be measured by use of luxury store scales as an instruments for identification of store perceptions. The results of use of this scale should be applied for determination of brand association received by the customers during sopping in luxury stores. In addition, it is quite important to note that Kerfoot et al. (2003) found that store type should be a result to continued consideration for use of visual merchandising techniques. Scholars found that the store type affects only visual merchandising association as customers expect that luxury brands have distinct visual instruments in their stores in comparison to mass market objects. Therefore, format of the store should not be disregarded by the scholars in the future investigations as well as it should not be dismissed until any future study establishes connection between visual merchandising and impulse buying behaviour in luxury store. Increased focus should be made to the evaluation of the effects of display use over store perception as an example of effective visual merchandising techniques. Nevertheless, Kerfoot et al. (2003) have alredy confirms that high level of use of quality visual merchandising instruments in luxury stores have a positive effect on store perception and intention of the consumer to conduct purchase.
