Effect of Visual Merchandising on Customer Buying

Behavior: A Case Study of Big Bazaar

Submitted in partial fulfillment of the requirements

for the award of the degree of

Bachelor of Business Administration (BBA)

To

GuruGobindSinghIndraprasthaUniversity, Delhi

Guide: Submitted by:

Dr. Sarmistha Sarma Aashna Thapar

Roll No.: 00290301715

Institute of Innovation in Technology & Management,

New Delhi – 110058
Batch (2015-2018)
 CHAPTER- 1

INTRODUCTION

COMPANY PROFILE: BIG BAZAAR

Big Bazaar is an Indian retail store that operates as a chain of hypermarkets, discount

department stores, and grocery stores. The retail chain was founded by Kishore Biyani under

his parent organization Future Group, which is known for having a significant prominence in

Indian retail and fashion sectors. Big Bazaar is also the parent chain of Food Bazaar, Fashion

at Big Bazaar (abbreviated as fbb) and eZone where at locations it houses all under one roof,

while it is sister chain of retail outlets like Brand Factory, Home Town, Central, eZone, etc.

Big Bazaar Pvt., Ltd operates a hypermarket that offers fashion and general merchandise such

as home furnishings, utensils, crockery, cutlery, sports goods, electronics, toys, footwear,

men's and women's apparel, accessories such as sunglasses, watches, and handbags, luggage,

fruits, vegetables, and stationery products. The company sells its products through its retail

stores located nationwide.

Founded in 2001, Big Bazaar is one of the oldest and largest hypermarkets chainin India,

housing about 250+ stores in over 120 cities and towns across the country.

With the rapid growth of the Indian retail Industry, and stiff competition coming from other

brands such as lifestyle, Big Bazaar has been striving to keep its game at par with the modern

trends. Thus it has ventured into new businesses, the latest of which is “fbb” (Fashion @ Big

Bazaar), which is a fashion centric chain of outlets aimed at attracting millennials.

Apart from that, Big Bazaar has also revamped its store designs and layout in order to keep

up with competing and upcoming brands of retail stores. Its core customer service initiatives

have been modified and enhanced in order to deliver “selfless” service to customers.

Another new initiative from Big Bazaar recently came in the form of the launch of “Gen

Next” stores. Launched in 2016, this is a concept of futuristic retail stores, loaded with

premium products set up in an environment designed to attract young consumers through

storytelling planograms and dynamic digital walls.

Big Bazaar is one of the top brands among all others owned by the Future Group, headed by

retail baron Kishore Biyani. Accordingly, the group has a broad vision for its future, which

involves creation of a one-crore customer base who shop for more than ₹ 1 lakh each, across

retail formats, to triple sales at ₹ 1 lakh crore.

OBJECTIVES OF THE STUDY

 To understand the importance of Visual Merchandising in the Retail Industry

 To understand the impact of Visual Merchandising on Customer Buying Behaviour.

 To analyse and evaluate the Visual Merchandising practices of Big Bazaar.

 To analyse the techniques of Visual Merchandising used by Big Bazaar for increasing

its sales.

 To correlate the customer perception of Visual aesthetics of the store with their

impulse buying decisions.

 To see the factors playing a role in provoking impulse buying behavior among various

age groups of customers.

 CHAPTER- 2

THEORETICAL FRAMEWORK AND RESEARCH METHODOLOGY

Visual Merchandising

Visual Merchandising can be defined as a science and an art involving principles, methods

and visual strategies implemented for the purpose of catching the eye of shoppers and

prospecting consumers and lure them into spending their money.

Visual Merchandising is vital to a successful retail concept. It is the heartbeat of a store that

keeps it sorted, relevant and fresh. It delivers the texture and ambience of the store that

enhances the store design and refers to anything that can be seen by the customer inside and

outside of the store, including the exterior wall designs and banners, window displays,

signage, decor, fixtures, and store layout.

While strolling around in a retail store in between shelves of groceries and other items, you

may find to have a particular liking towards some products which are displayed in a unique

fashion or a few which have a distinguished looks thanks to the background and props which

enhance its overall attractiveness! This attraction by the means of sight is the illusion that

Visual Merchandising seeks to imprint into the minds of buyers.

VM has been a crucial part of the retail Industry ever since its inception. For an industry as

varied and dynamic as a retail business. Sales have to be boosted through innovative ways

which entice consumers to buy products displayed in just the right way so as to garner

attention and lead to a subsequent purchase.

While initially it was a practice influenced by art and a very basic and limited understanding

of customer perception, Visual Merchandising is gradually evolving into a science consisting

of technical design, psychological understanding of consumer behavior, and theoretical

knowledge of aesthetics among several other elements of study which make it a much wider

field than ever before.

The significance of Visual Merchandising in the Retail Industry

The Retail Industry runs on sales of goods and provision of services accessed and used

consistently by consumers. Any firm within the industry thus finds the consumer to be the

major fuel to its business gains.

Now, retail stores are commonplace in urban and semi-urban areas in any locality. This

establishes the fact that consumers are not fixed to any one option. In such a case, each store

existing in an area has to increase its sales by obtaining the largest number of consumers.

While there are many ways to increase customer traffic in a store, such as through advertising

and other means of promotion, it isn’t always enough to close a successful business

transaction with a customer.

This is where Visual Merchandising comes into play. From the arrangement of products in a

conveniently visible and accessible way to a layout that’s easily understood after just a single

visit to a store, the focus of VM is to make customers comfortable with the environment of

the store. That aspect is facilitated by other elements and props such as mannequins,

lightings, and other elements which enhance the appeal of the products showcased in the

store.

The appeal created through sight alone leads to most of our decisions throughout our entire

life. It is the knowledge of this basic psychological understanding which is used along with

art, and some scientific principles to form a design, and visual appearance and environment in

a store that makes a shopping experience unique for each incoming customer.
Major Retail store chains such as Big Bazaar, Croma, Lifestyle and Reliance Retail can be

easily distinguished by their appearance. This differentiation is what these stores aim for in

order to drive their target crowd to maximize sales.

Another significant aspect of Visual Merchandising exists in its ability to influence customers

and provoke impulse buying decisions. While most sales in retail stores occur through

planned purchases by customers, creating an environment capable of generating impulse

buying decisions on part of customers can go a long way in multiplying the profits for a store.

The final and most vital aspect of visual merchandising is making the perfect utilization of

the available retail space. A retail store has to display the maximum amount of products to

customers in order to increase sales. This can’t be done in any random manner since that

would prevent convenient access for customers to products, and at the same time mix up all

different categories of products with each other. Through Visual Merchandising and the use

of its principles, product layout in a store can be done in a way that uses the maximum space,

all while making the store space feel open and comfortable for a smooth shopping

experience.

Techniques of Visual Merchandising

Visual merchandising basically involves the modification and conditioning of two aspects of

the store. The Interior and the Exterior. The aesthetics of the exterior design is what would

make a customer feel that their desired product will be found in the store. While this entices

the customer into entering the retail space, the second aspect; i.e., the Interior design soothes

the customer and creates an environment wherein he/she would make purchasing decisions

influenced by the environment and ambience within the store.

All of this takes place through two techniques of visual merchandising, which are guided by

their own set of principles.

The techniques of Visual Merchandising are the following:

1- In-Store Design

In-store design refers to the aspects of a store’s design concerned with the internal structure,

which is the place where all the action takes place. Multiple categories of products aligned in

different shelves, premium products displayed in strategically planned locations, and generic

items displayed in bulk at easily visible places. All such planning is involved in the In-Store

design.

There are a certain set of basic principles of Visual Merchandising which exist in the interior

structure of the Store, these include:

Vertical/Horizontal Principle

In the vertical principle, the merchandise is displayed on a shelf in a vertical pattern of

rows, which not only make the particular product easier to be found but creates a

visual appearance which is easily recognizable. Vertical merchandising is perfect for

display of products including fashion apparel, clothes and food items such as cold

drinks, juice cans, etc.

The horizontal principle is used primarily for display of items such as Stationary

products, books and CDs. In this principle, one particular product is displayed across

an entire row, with the rows below containing a different product of the same

category.

Pyramiding

The pyramiding principle involves the display of multiple products in a shape

resembling that of a pyramid. The purpose of such a structure is to highlight a focal

point in the middle and bring the viewer’s attention to the other sides at the same

time. Such a principle is applicable on display of products having multiple

accessories, or to display similar but inferior variants of one core product.

Symmetry and Balance

This principle puts emphasis on maintaining a symmetrical shape in the display of

products. The obvious reason for this is the fact that symmetrical designs feel

soothing, and are comfortable to move around in. Symmetrical designs are all too

common in the display of almost every other store out there. However, there are some

rare times when a particular product has to be displayed in an asymmetrical way, just

in order to look abstract and thus grab the attention of viewers.

Consistency & Repetition

Consistency in the lineup of products in a display is essential for two reasons. One, it

easily creates an image in the viewer’s mind. Two, repeated lines of rows of the same

product type make a pattern which is ultimately consistent and allows the eyes to read

all details in a short span of time.

Storytelling/Cross Merchandising

Storytelling or Cross Merchandising is a way of product display in which multiple

products of different types may be placed together in order to convey a sense of a

particular lifestyle. For example, a book on cooking may be displayed while being

surrounded with cooking items and tools, which may entice the viewer to purchase the

tool as well in spite of only planning to buy a book in the first place.

Color

The principle of color is quite simple. Unique color patterns make a beautiful visual

impact in the eyes of the viewer, and a color-based assortment of products in a display

can make a whole shelf look good. The principle of color may be mixed up with other
 principles such as horizontal/vertical rules in order to create interesting patterns of

products in a store.

Enhancement of Highlights

Sometimes, it’s the little details of the product which make it appealing to prospective

buyers. The goal of Visual Merchandising is to ensure that such details are never

missed by the consumer’s vision. To enhance the highlights of a product on display,

many props such as mannequins and lighting effects may be put into use. In some

cases, however, all props and details might be eliminated from the display in order to

show nothing but the whole product itself in its true glory. The display of Apple’s

iPhones in executive Apple showrooms across the US are the primary example of this

principle.

2- Exterior Window display

The exterior window display highlights what a customer sees before entering a retail store. A

good window display can go a long way in attracting consumers towards a store. It is with

this emphasis that Visual Merchandising’s principles of exterior design involve

considerations of the following aspects:

Graphics, Images, and Signage

Graphics in this context is used for forms of communicating information to a viewer in a

digital, or a text design based format. This can be done through signages, which tell the

customers what to expect inside the store and let them know about any ongoing deals and

offers.

Lighting
Lighting effects give a certain character to the window display. Not only does it illuminate

the point of focus of a product line, but it also makes for scintillating view in nighttime if

executed well. The color temperature of lights can be adjusted according to the moods and

emotions that the store intends to create.

Seasonal Displays

Seasonal displays play a huge role in enticing customers into a store for huge amounts of

purchases. A new season, a festival or an event could be a trigger for a lot of consumers to

make bulk purchases. Thus appropriate theming of the store as per the ongoing season would

direct early consumer traffic. Retail stores may even attempt to gain a first mover advantage

in this aspect by setting up themes for a new season well in advance even before its arrival.

Visual Merchandising practices of Big Bazaar

Store layout and design at Big Bazaar

Big Bazaar features a mixture of two kinds of store layout type in all its outlets. The type of

layout chosen at any particular location depends on the size of the retail space, and the design

of the local stores around. The types of layouts are the following:

1- Loop (Racetrack) layout

2- Conventional Grid layout

Loop

This layout resembles a closed loop that starts from the entrance of the store and takes the

customers towards nearly all points of the store in the way before they checkout. This

happens because of the fact that the checkout is located at the other end of the loop, which

consequently means that a customer will end up seeing most parts of the store before they

exit.

Grid Layout
Big Bazaar uses its standard Grid layout for most of its small stores in semi-urban areas. In

such a store layout, the merchandise is displayed in a pattern of long aisles around which

customers can go up and down. This layout maximizes the product display area for customers

and minimizes waste of space. However, unlike a loop structure, a section of the merchandise

always remains hidden for the customer unless he/she directly goes to that side to view it.

Othe highlights of Store design in Big Bazaar

 While the Big Bazaar stores in semi-urban localities may only have a single entrance,

those in posh localities have multiple entrances made to control customer traffic.

 Big Bazaar stores use long Gondolas (a free-standing structure used in retail stores to

display merchandise) for holding all kinds of items, including food and grocery.

 The apparels in Big Bazaar are held by long straight racks, which make it easier for

consumers to view and select their choice.

Visual Presentation in Big Bazaar stores

 The Big Bazaar stores have different sections for apparels, electronics, toiletries

and other kinds of products. Within these sections, there are well-defined

subsections for distinguishing between products for men/women, type of

electronic products, etc.

 The color presentation of the store includes subtle red and yellow lighting which

provides a warm and airy feeling.

Planogram of a Big Bazaar Store (Grid Layout)

What is a Planogram?

Planograms are visual representations of a store's products and services. They are considered

a tool for visual merchandising. According to the Oxford English Dictionary, "It is a diagram

or model that indicates the placement of retail products on shelves in order to maximize

sales." Planograms, therefore, help dictate a retail store's layout.

CUSTOMER EXPERIENCE AT BIG BAZAAR (in context of visual

merchandising aspects)

When one glances at a Big Bazaar store from around 50 meters back, the orange and dark

blue logo doesn’t really strike as much, perhaps because of the fact that it's now just as
common as a Maruti Alto. Either way, never does a Big Bazaar store, from a visual

standpoint, give away a feeling of entering a sophisticated retail store which it actually is. It

just feels like you’re walking into just another supermarket in a locality.

That feeling changes once you’re inside after check-in when you are greeted with signage and

advertisements displaying the sales, discounts, and offers at the store. The front part of the

store is purely designed to tickle the consumers and entice them into an impulse-fuelled

buying behavior. However, a look at the sides in the front area will take off some of the

temptations unless one has an irresistible liking for sweets and chocolates because that’s what

the section at the right side offers you.

The Gondolas in the store stay firm in their place, holding all food and grocery items, which

are neatly arranged and stacked up together. Since it’s a well known retail chain, one cannot

really expect a Big Bazaar store to not be flowing with people. The ambience makes for a

comfortable environment to shop, that is if you are a first-time shopper. For a regular

shopper, the same repeated tones of music and the same kind of lighting might seem to be tad

boring.

Considering the experience of visiting a Big Bazaar store from a perspective of analysing its

visual merchandising practices, its fair to say that there is some amount of strategy involved

in the store design. It isn’t anything extraordinary, but at the same time, the brand isn’t trying

to create that kind of a vibe anyway.

 CHAPTER- 3

DATA ANALYSIS AND INTERPRETATION

Questionnaire details:

Q1- Gender

Male 39%

Female 61%

39%

61%

Male Female

Interpretation

A majority of the respondents of the Questionnaire were females (61) compared to males

(39). Since women are the most regular shoppers in Indian families, they constitute of a

significant portion of customers in a Big Bazaar retail store. Consequently, the customer

behaviour of women would be one major determinant of the overall consumer behaviour, as

well as the impact of Visual Merchandising on the consumer base as whole.

Q2- Age

10-20 -

20-30 25%

30-40 30%

40-50 14%

50 and above 31%

0%

25%
31%

14% 30%

10-20 20-30 30-40 40-50 50 and above

Interpretation

Out of the 100 respondents, a major percentage of the people were in the age group of 30-40

(30) and over 50s (31). People in the age group 30-40 are generally bearers of young

children, and might take frequent visits to retail stores for buying items to cater to the needs

of their young ones. This age demographic is particularly more likely to make more impulse-

fuelled purchases compared to those in other age groups at a retail store. People in ages of

over 50 are those who’d have either settled on to a good balance of life and career, or might

have already retired or nearing their retirement age. The assumption here is that such people
would be regular shoppers of food and other functional items which support their daily

lifestyle.

Q3- Occupation

Employee 55%

Business 7%

Home Maker 17%

Student 10%

Other 11%

11%

10%

17% 55%

7%

Employee Business Home Maker Student Other

Interpretation

Most of the respondents in the Questionnaire were people working as employees (55) in

various fields and Organizations. The second lead was from those working as home-makers

(17), which of course include women. A significant part of even those in the employee

section are working women. A retail store is frequently visited by women for making

household purchases in the Indian society, and thus they form a major bulk of the overall
customer base. From the context of Visual Merchandising, home-makers are least likely to be

bothered by aesthetics, as their focus would be on buying functional items for household

rather than buying on impulse, which is what other groups of occupational people might do

occasionally.

Q4- Income Range (Optional question)

₹10-20k 20%

₹20-30k 5%

₹30-40k 19%

₹40-50k 18%

₹50k and above 28%

Not specified 10%

10%
20%

5%
28%

19%

18%

₹10-20k ₹20-30k ₹30-40k ₹40-50k ₹50k and above Not specified

Interpretation:

A major portion of respondents (28) belong in the Income group of over ₹50,000 per month.

People with a higher income are most likely to spend money on Impulse purchases, while
those with a limited income would prefer to spend just as much as their shopping list allows

them to do. A decent chunk of respondents (20) also have reported to earn just around ₹10-

20,000 a month, these are students who are yet to live independently on their own money,

and so a part of their purchases might be out of the money of their parents/guardians.

Q5- How often do you visit Big Bazaar store?

More than Once in a week 7%

Once a week 15%

Once in a month 32%

Only on offer days (Big Days,Wednesday Bazaar) 16%

Very rarely 30%

7%

30% 15%

16% 32%

More than Once in a week Once a week

Once in a month Only on offer days (Big Days,Wednesday Bazaar)
Very rarely

Interpretation

Most of the respondents either visit a Big Bazaar store once in a month (32) or much rarely

than that (30). This can attributed to the typical buying behaviour of Indian customers as far
as buying Household items are concerned. People prefer to buy a huge list of items at one run

itself, which is then stored at home to be consumed in a span of a month. The same can be

said about other categories such as generic apparels, which are mostly purchased at the start

or end of different seasons.

Q6- How do you come to know about new product arrivals in the store?

Through display of the product 30%

Through offers 34%

Through Announcements 14%

By enquiring salesperson 7%

You search on your own 15%

15%

30%
7%

14%

34%
Through display of the product
Through offers
Through Announcements
By enquiring salesperson
You search on your own

Interpretation

Through the data recorded by questionnaire, it is clear that Visual Merchandising play a

crucial role when it comes to creating awareness about new products available at the store. 30
respondents reported to have been aware of new products on offer due to their strategically

planned display location at the store and 34 other people came to be aware of new products

through offers communicated via other marketing strategies, but presented in the environment

of the store itself.

Q7- Does the way of product arrangement & display in the store attract you?

Always 17%

Mostly 47%

Sometimes 27%

Rarely 5%

Never 4%

4%
5%
17%

27%

47%

Always Mostly Sometimes Rarely Never

Interpretation:

In a largely positive set of responses. 47 out of 100 respondents reported to have been mostly

attracted to the visual elements in a Big Bazaar store. This is a great sign of the prowess of

Visual Merchandising in the retail store chain. In order to differentiate itself from its rivals, a
store needs to create certain visual aspects which grab the customer’s attention. With the

answers that came through the questionnaire, an assumption can be made here that over 60%

of the total respondents would definitely have some visual memory (in context of the store/

product appearance) in their minds after checking out of a Big Bazaar store.

Q8- Do you generally follow the display and layout to find a product?

Strongly Disagree 2%

Disagree 10%

Neutral 27%

Agree 41%

Strongly Agree 20%

45%

40%

35%

30%

25%

20% 41%

15%
27%
10% 20%

5% 10%

0% 2%
Strongly Disagree Neutral Agree Strongly Agree
Disagree

Interpretation:

41 respondents agreed to have made attempts to use the layout of a store and product line, in

order to find their desired goods to purchase. This is an important part of visual

merchandising, as all of the subject’s principles focus on making the available merchandise
easy to be seen by the eyes of the customers, no matter how stacked the diverse range of

products might appear to be. Though there are still a significant part of people who seem to

have not considered any visual cues helpful for them in finding their desired products (27).

Q9- When you enter the store…

I go straight to the products which I want 24%

I walk through the store as it leads me 35%

I do not follow any pattern, I just walk randomly and pick up products 33%

I seek the help of salesperson to navigate in the store 8%

8%

24%

33%

I go straight to the products 35%

which I want

I walk through the store as it

leads me

I do not follow any pattern, I just

walk randomly and pick up
products
I seek the help of salesperson to
navigate in the store

Interpretation

The decision about knowing where to go once after entering the store largely depends on the

mind-set of the consumers, but certain aspects of visual merchandising can play a role in
twisting this mind-set and encouraging them to look and move towards a particular area of

the store. In this case, 35 Big Bazaar customers reported to go straight to the area where their

desired products were on display, and another 33 seemed to have no pattern in mind, and

went through the store picking up everything that they wanted.

Q10- While shopping, how do you come to know about the offers for the day in the

store? (Tick only one option which is most relevant)

Sign Boards 38%

Promo Areas(Melas,Celebrations) 25%

Sales people 28%

Pamphlets 22%

Announcements in the store 26%

40% 38%

35%

30% 28%
25% 26%
25% 22%
20%

15%

10%

5%

0%
Interpretation

Most of the respondents (38) came to know about the offers at the store through sign boards,

which are an important element in enhancing the exterior aspects of VM. While Sales people

and store announcements played a crucial role as well for most people, pamphlets and Sign

Boards still grabbed the attention of 60 out of 100 people, which clearly undermines the role

played by these tools in promotion of the store.

Q11- On a scale of 1-5, rate the different visual elements of a Big Bazaar store. (1 being

downright appalling, and 5 being exceedingly appealing).

1 2 3 4 5

Exterior 11% 30% 24% 25% 10%

Interior Ambience 5% 26% 34% 23% 12%

Product Display 6% 22% 27% 22% 23%

Product Sorting 7% 23% 23% 29% 18%

40%
34%
35%
30%
29%
30% 27%
26%
25%
24%
25% 23% 23% 23% 23%
22% 22%

20% 18%

15% 12%
11%
10%
10% 7%
6%
5%
5%

0%
Exterior Interior Ambience Product Display Product Sorting

1 2 3 4 5
Interpretation

The responses to this question by the respondents were actually quite unexpected, and in a

way disappointing as far as the appeal of VM of the store is concerned. Most of the

respondents (30) rated the exterior 2/5. The average ratings for the Interior Ambience and

Product Display were a respectable 3/5, by 34 respondents for the Interior Ambience and 27

for the latter. Product Sorting received an average rating of 4/5 by 29 respondents. On a

positive note though, most of the ratings for all aspects still hovered around the 3-5 scale.

Q12- If you bought some products other than what you came to buy, which of the

following factors made you buy more? (Tick as many as possible)

Attractive display of the product 31%

Good Product 40%

Information provided by Salesperson 13%

When I see a good deal, I buy more than I intended to buy 40%

No specific reason, I just bought because I liked the product 14%

I did not buy anything out of list 5%

 45%
40% 40%
40%
35% 31%
30%
25%
20%
13% 14%
15%
10%
5%
5%
0%
Attractive display Good Product Information When I see a good No specific I did not buy
of the product provided by deal, I buy more reason, I just anything out of
Salesperson than I intended to bought because I list
buy liked the product

Interpretation

40 out of 100 respondents of the questionnaire reported to be influenced by the quality of the

product, and the discount offers available in cases where they actually bought more than what

they had initially came to purchase. This indicates a fact that most of Big Bazaar customers

prefer functionality of the product and value for money over any other visual and aesthetic

values. From a VM standpoint, Display attractiveness was a stimulus for 31 respondents to

make an additional spending on products exclusive of their planned purchases.

Q13- Have you ever experienced instant/unplanned buying in store?

Yes 86%

No 14%
 14%

86%

Yes No

Interpretation

A whopping 86 out of 100 respondents reported to have made unplanned purchases on their

usual visit to a Big Bazaar store. While this isn’t any extraordinary revelation considering the

fact that customers do tend to do so most of the time, still it indicates a key role of

functioning for VM. A perfect implementation of VM could play a huge role in generating a

large number of sales in any particular category of merchandise. Influencing these unplanned

purchases of customers is essentially the premise of the subject. This data shows that a large

chunk of Big Bazaar customers do tend to regularly indulge in such kind of buying

behaviour, thus increasing the scope of Visual Merchandising in the store’s appearance and

practicality. The little proportion which doesn’t indulge in unplanned purchases still are

under the belt of VM, as they are the regular customers of the firm who need to be satisfied

on a sustained basis.
Q14- If "yes", which factor influenced you more to take instant/unplanned buying

decision. (Optional question)

Placing of the product 14%

Influence of Promotional Signage 31%

Excitement in trying out a new product 38%

Influence of Mannequin Display 8%

No response 9%

9%
14%
8%

31%

38%

Placing of the product Influence of Promotional Signage

Excitement in trying out a new product Influence of Mannequin Dsiplay
No response

Interpretation

After looking at the 91 responses received to this optional question, it is understood that a

majority of unplanned purchases (38%) are made out of the intrinsic excitement generated in

the mind of the customer after looking at a particular product. VM has an important role to

play here for the conversion of this excitement into a successful purchase of a product. Along

with that, Promotional Signage in and outside the store also has a significant role to play here.
Q15- What do you feel about the product arrangement in the store?

Excellent 8%

Very Good 49%

Good 32%

Average 10%

Poor 1%

1%

10% 8%

32%

49%

Excellent Very Good Good Average Poor

Interpretation:

In a set of largely positive responses, 49 out of 100 respondents found the product

arrangement in the store to be very good, and 32 respondents consider it just fine. It is to be

kept in mind that product arrangement is entirely different from product display, thus it’s not

about how it looks, but how it functions which ultimately counts. From that perspective, the

customers have found the product arrangement in the store to be quite practical to their needs.

The term “practical” here implies the visibility and ease of access to products within the

store. It has to be done in such a way that neither does it appear too vibrant, nor does it look

annoyingly dull in the eye of the customer.

Q16- Visual display/Presentation of products influences my buying decision in the store.

Strongly Disagree 3%

Disagree 9%

Neutral 26%

Agree 35%

Strongly Agree 27%

3%
9%
27%

26%

35%

Strongly Disagree Disagree Neutral Agree Strongly Agree

Interpretation:

A large percentage of customers have reported to have been positively influenced by the

visual presentation of products in a Big Bazaar store. The appreciation and general attention

on part of the customers about the store’s product display aesthetics is quite visible from the

responses to previous questions as well. While there is a small chunk which has a neutral

perspective on that matter, it still implies that the capability of persuasion exhibited by the

visual appeal of a product is not something which can be ignored easily. The term “Visual

display” is a much broader term than it looks to be, and involves other elements such as
lighting, props and other enhancements to the product’s stall or shelf which make it look

worth its price.

Q17- How do you feel that the following factors influence your buying decisions in a

store? (1 being totally unaffected, and 5 being totally influenced). Rate the following

from 1-5.

1 2 3 4 5

Locating products through signs, 7% 30% 26% 29% 8%

graphics, etc.

Lighting 13% 17% 31% 21% 18%

Music 18% 28% 23% 19% 12%

Fragrance 13% 30% 21% 22% 14%

Colours 13% 28% 20% 19% 20%

35%
31%
30% 30%
29%
30% 28% 28%
26%
25% 23%
22%
21% 21%
20% 20%
19% 19%
20% 18% 18%
17%
14%
15% 13% 13% 13%
12%

10% 8%
7%

5%

0%
Locating products Lighting Music Fragrance Colours
through signs, graphics,
etc.

1 2 3 4 5
Interpretation

With an average rating of 2/5, a majority of the customers do not seem to be influenced by

Signs & graphics, fragrances and background colours of the store. Lighting has a rating of 3/5

by 31% of the customers. The background music in the store is of no purpose it seems, as it

has a 2/5 rating on average by 28% of the customers.

Q18- On the whole how was your shopping experience with Big Bazaar?

Highly Satisfied 8%

Satisfied 64%

Neither Satisfied nor Dissatisfied 22%

Dissatisfied 5%

Highly Dissatisfied 1%

1%

5% 8%

22%

64%

Highly Satisfied Satisfied Neither Satisfied nor Dissatisfied Dissatisfied Highly Dissatisfied
Interpretation

In the conclusion to the questionnaire, 64 out of 100 respondents reported to be satisfied with

the overall experience at Big Bazaar in terms of all visual elements of the store. While a

decent portion of the people have maintained a neutral opinion, it still gives a scope for

improvement in the future. In respect of data collected from all questions, the reason for

satisfaction stems from a few aspects of Product Display and Product arrangement. This also

gives a rough idea on the general behaviour of the customers, which can be termed as a

budget and value centric base capable of being influenced by nuances of Product display in

the store.

Karl Pearson’s Coefficient of Correlation

Karl Pearson’s Correlation Coefficient is a statistical method used to determine the

relationship between the variables of two sets of data. This method is one of the most

commonly used methods for analysis of statistical data.

It is essentially a measure of correlation between two variables X and Y, done in order to

determine the kind of relationship between them. The Coefficient of Correlation usually ends

having:

i. A value of 1, in which case there will be a positive correlation between the two sets of

variables.

ii. A value of 0, in which case there will be no correlation between the two sets of data

(x & y)

iii. A value of -1, a case in which there will be a negative correlation between X and Y.
Karl Pearson’s correlation coefficient is mainly denoted by the letter “r”. In the presence of

two datasets X & Y containing n values, the formula for Pearson’s coefficient correlation will

be as follows:

The next part of data analysis and interpretation will deal with the relation between multiple

datasets in this questionnaire through the use of the above discussed statistical method.

1- Attention of the customers grabbed by the Product arrangement and display

whilst shopping(x), compared to the general liking towards the merchandise

arrangement in the store itself in terms of functionality(y).

While shopping, customers are likely to be attracted by certain visual elements strategically

placed within the store. However, it is what happens after this point of attraction that

determines the buying decision of customer, and hence, it is important to know whether the

customers are actually convinced by the display and arrangement aspects of the store, and

whether it offers the perfect amalgamation of beauty and functionality.

For calculating the Pearson’s correlation coefficient, the responses have been denoted as

numerical terms.

 In Q7, which is “Does the way of product arrangement & display in the store attract

you?” The responses have been denoted as:

 Always= 1

Mostly= 2

Sometimes= 3

Rarely= 4

Never= 5

 The second set of data is from Q15, which is “What do you feel about the product

arrangement in the store in terms of functionality?” The responses have been denoted

as:

Excellent= 1

Very Good= 2

Good= 3

Average= 4

Poor= 5

There are a total of 100 responses in both sets of data, each response having one of the 5

options assigned to both questions separately.

MS- Excel has been used for the calculation of Pearson’s Coefficient Correlation in this case.

The result of the calculation is the following:

R=0.444182235

The obtained value thus shows that there is a moderate but positive correlation between the

two sets of variables. For interpretation in a theoretical context, this proves the fact that there

is a weak chance for customers who have their focus diverted by the Product arrangement

and display; are likely to find it functional to their purpose even while shopping. In essence, it

proves as far as Product display and arrangement go in the VM practices at Big Bazaar,

beauty and function are held at a reasonable, if not a perfect level of balance.
Below is the interpretation of the two sets of data in a scatter chart:

5
Rating scale (1-5)

0
0 20 40 60 80 100 120
Responses

Attractiveness of the Product Arrangement while shopping

What do you feel about the product arrangement in the store?

2- Rating of the product display by customers in comparison with their opinion on

the same factor influencing their buying decisions.

In the questionnaire, the average rating for the Product Display at Big Bazaar store has been

given as 3/5 by the participating respondents. On question of whether this aspect of VM

influences their buying decisions, the average ratings came out to be 4/5. The Coefficient

Correlation analysis below aims to analyse the sets of data of these two questions in order to

determine how well, does the attention towards the Product Display in a store turn into a

buying decision on part of customers, thereby generating more sales for the Store.

 The first set of variable data in this analysis is Q11- C “On a scale of 1-5, rate the

Product Display quality of a Big Bazaar store. (1 being downright appalling, and 5

being exceedingly appealing)”.

The responses are done based on a scale of 1-5, the definitions of which are already

mentioned in the question.

  The second set of data is from the responses to Q16 “Visual display/Presentation of

products influences my buying decision in the store”.

The responses are once again, based on a 1-5 linear scale, and with 1 being defined as

a strong disagreement to the mentioned statement, and 5 being defined as a strong

agreement for the same.

There are a total of 100 responses for both the questions, with each response having a

selection of a single number within the scale.

MS- Excel has been used for the calculation of Pearson’s Coefficient Correlation in this case.

The result of the calculation is the following:

R= 0.556304066

The obtained value here indicates a moderate and positive correlation between the given two

sets of data. Thus, it can be said that in cases when customers tend to have a liking for the

Product Display, it subsequently also plays a role in influencing impulsive buying behaviour.

Given below is the interpretation the two sets of data in a scatter chart:

5
Ratings (1-5)

0
0 20 40 60 80 100 120
Responses

12. On a scale of 1-5, rate the different visual elements of a Big Bazaar store [Product
Display]
17. Visual display/Presentation of products influences my buying decision in the
store.
Pearson’s correlation through Matrix table

How often Does the way of Do you generally Visual On the whole

do you visit product arrangement follow the display and display/Presentation of how was your

Big Bazaar & display in the store layout to find a products influences my shopping

Store? attract you? product? buying decision in the experience with

store. Big Bazaar?

Gender -0.207373894 -0.175592851 0.150686527 0.107125024 -0.084263588

Age -0.095285466 -0.052473209 -0.098376384 -0.109699486 -0.060197151

Occupation -0.259968707 -0.052473209 0.049585383 0.101805862 0.06280325

Income 0.127358666 -0.098459865 0.024630042 0.032729789 0.092612897

Interpretation:

1- Relationship between Gender and other variable sets of data

 No. of Visits at a Big Bazaar store.

R= -0.207373894

There is a weak and negative correlation in this case

 Attraction of customers towards product arrangement and display

R= -0.175592851

There is a weak and negative correlation in this case

 Customer behaviour pattern in consideration of finding the desired products

through display and store layout

R= 0.150686527

There is a weak but positive correlation in this case

 Influence of Visual display in Customer Buying Decision

R= 0.107125024

There is a weak but positive correlation in this case

 Rating of overall experience with Big Bazaar

R= -0.084263588

There is a weak and negative correlation in this case

2- Relationship between Age and other variable sets of data

 No. of Visits at a Big Bazaar store.

R= -0.095285466

There is a weak and negative correlation in this case

 Attraction of customers towards product arrangement and display

R= -0.052473209

There is a weak and negative correlation in this case

 Customer behaviour pattern in consideration of finding the desired products

through display and store layout

R= -0.098376384

There is a weak and negative correlation in this case

 Influence of Visual display in Customer Buying Decision

R= -0.109699486

There is a weak and negative correlation in this case

 Rating of overall experience with Big Bazaar

R= -0.060197151

There is a weak and negative correlation in this case

3- Relationship between Occupation and other variable sets of data

 No. of Visits at a Big Bazaar store.

R= -0.259968707

There is a weak and negative correlation in this case

 Attraction of customers towards product arrangement and display

R= -0.052473209

There is a weak and negative correlation in this case

 Customer behaviour pattern in consideration of finding the desired products

through display and store layout

R= 0.049585383

There is a weak but positive correlation in this case

 Influence of Visual display in Customer Buying Decision

R= 0.06280325

There is a weak but positive correlation in this case

 Rating of overall experience with Big Bazaar

R= -0.060197151

There is a weak and negative correlation in this case

4- Relationship between Income and other variable sets of data

 No. of Visits at a Big Bazaar store.

R= 0.127358666

There is a weak but positive correlation in this case

 Attraction of customers towards product arrangement and display

R= -0.098459865

There is a weak and negative correlation in this case

 Customer behaviour pattern in consideration of finding the desired products

through display and store layout

R=0.024630042

There is a weak but positive correlation in this case

 Influence of Visual display in Customer Buying Decision

R= 0.032729789

There is a weak but positive correlation in this case

 Rating of overall experience with Big Bazaar

R= 0.092612897

There is a weak but positive correlation in this case

Analysis of Demographic data

The frequency of visits to the store by Males & Females:

Visit Only on Once in a Once in a More than once Total

Rarely offer days month week in a week
Male 13 10 12 3 1 39
Female 17 6 20 12 6 61
Total 30 16 32 15 7 100

25

20
20
17

15 13
12 12
10
10
6 6
5 3
1
0
Visit Rarely Only on offer Once in a month Once in a week More than once
days in a week

Male Female

Interpretation:

Through the analysed data, it is known that most of the customer base of Big Bazaar consists

of women, and irrespective of the gender, most customers prefer to visit the store only once

in a month, or even more rarely in some cases. Males, in this case have been seen more likely

to shop at Big Bazaar on huge offer days and special occasions. This data shows no unique

insights in particular, and sits well in context with the practices in Indian culture, wherein it’s

the women who do most of the shopping. However, Men also get shopping during special

occasions and on times of gifting seasons.

The frequency of customer visits to the store in relation with their age groups

More than Once in a week Once in a Only on Very Total

once in a month offer days rarely
week
20-30 - 2 9 4 10 25
30-40 2 8 12 3 5 30
40-50 - 1 2 5 6 14
50 & 5 4 9 4 9 31
above
Total 7 15 32 16 30 100

14
12
12
10
10 9 9 9
Respondents

8
8
6
6 5 5 5
4 4 4
4 3
2 2 2
2 1

0
More than once in a Once in a week Once in a month Only on offer days Very rarely
week
Visits at the store

20-30 30-40 40-50 50 & above

Interpretation:

Through the analysed data, it is observed that people in the age groups of 50 & above, and

30-40 constitute the highest number of visitors at the store. These two are the rare age-group

of people who are likely to visit the store more than once a week. The reason for people in the

30-40 age group to be such frequent visitors might have to do with the fact that people in this

age are generally parents of new and young children, and thus would have to make frequent

visits to a retail store in order to satisfy their family needs. As far as the age group above 50

is concerned, those people might be frequent visitors because of their increasing daily needs,

which comes from ageing and the desire for maintaining a healthy lifestyle at this period.
The overall Satisfaction rate of different age groups with Big Bazaar.

Highly Dissatisfie Neither Satisfied Satisfied Highly

Dissatisfied d nor dissatisfied Satisfied
20-30 1 2 6 20 2
30-40 0 0 7 10 1
40-50 0 2 3 20 2
50 & 0 2 5 14 3
above

25

20 20
20

15 14

10
10
7
6
5
5 3 3
2 2
1 1
0 0 0
0
20-30 30-40 40-50 50 & above

Highly Dissatisfied Dissatisfied

Neither Satisfied nor dissatisfied Satisfied
Highly Satisfied

Interpretation:

Among the most satisfied customers are those within the age groups of 20-30 and 40-50. A

positive highlight in this data is that all age groups have a largely similar perspective towards

the overall services, and 4/5 (Satisfied) is the highest rating within all these groups. A key

coincidence here is the amount of similarities between the data of age groups 20-30 and 50 &

above. Those in the age group of 20-30 are mostly students and others who are just starting to

have an independent life with their own money and job. The age-group of 40-50 may include

mature families who are very likely be regular customers at a retail store such as Big Bazaar.
 CHAPTER- 4

FINDINGS, SUMMARY AND CONCLUSIONS

Findings of the Study

 About 64% respondents find the experience at Big Bazaar Satisfactory.

 Among all aspects of Visual Merchandising, the only factors which grab the highest

amount of attention from customers are the Product display and its arrangement.

 The customers seem to show no particular liking towards the signs and graphics,

lighting, background music and colour theming of the Big Bazaar store.

 The Product display style and aesthetics are what influence most of the impulse

buying decisions of customers at Big Bazaar.

 A major portion of the customer base of Big Bazaar consists of shoppers who only

visit once in a month, or sometimes much rarer than that.

 The shoppers at Big Bazaar largely have their purchases pre-planned, and in most of

the cases do not prefer to buy any more than planned unless they see a new product.

 Out of all methods of promotion used by Big Bazaar, Sign Boards and Offers

highlighted within the interior premises of the store are what gather the attention of

most of the consumers.

 An assumption can be made here that the customer base of Big Bazaar prefer their

store to have functionality in its visual merchandising practices more than any other

element of it. Generally, VM is only considered to include visual aesthetics which

encourage impulse buying behaviour. However, in the case of Big Bazaar, the store’s

VM practices itself, and as well as the customer preferences, seem to lean more

towards a more pragmatic approach rather than one involving only the elements of

beauty.
 Most Males are likely to go to Big Bazaar only on special occasions and days of

exclusive sales offers. Females, on the other hand make much more consistent visitors

to the store.

LIMITATIONS OF THE STUDY

 The sample collected for Data Collection was from a random group of people
expected to be frequent shoppers, thus there are chances that certain respondents

might not be regular Big Bazaar shoppers at all.

 Since the Questionnaire and the research subject is largely based on opinion and
perception based data, there isn’t much scope for a detailed statistical analysis for the

collected data.

 The Indian shopping culture essentially isn’t oriented towards aesthetics in general.
Indians are more driven by Product discounts and its quality rather than any visual

element in general. In this case, it is quite difficult to point out any peculiars taste of

the shoppers in context of the visual merchandising elements.

 Big Bazaar provides a very little amount of data about their Visual Merchandising
practices in general, so most of it had to be assumed through observation and

recognition of visual patterns in different Big Bazaar stores.

 While Visual Merchandising is an important element of influencing Impulse buying

behaviour, the highly overloaded functions of other departments such as Human

Resources and Inventory Management have lowered the value of VM practices by a

little margin.

 With more and more companies trying to reach customers right at their homes
through online retailing, the importance of VM is gradually receding, although it may

be so just for a short period of time.

Suggestions from the respondents of the Questionnaire

 The ambience at Big Bazaar stores needs to be enhanced.

 The cart size at the store could be improved.

 The stores should be more spacious for ease in moving around.

 The Product arrangement for items of a few generic categories remain uncluttered.

That could be improved.

 Products and accessories display needs to be enhanced with more highlights.

 Long queue in front of billing counter is highly disappointing, a suggestion for this

problem is to increase the number of billing counters in the store.

 Colorful Graphics and addition of more signboards is suggested for better

presentation of brand value.

 The display quality has to be improved, and should be made more prominent like the

brand Spencer’s.

 A lot of work needs to be done on the exterior.

 The in-store background music is too repetitive and should be made better to suit the

tastes of customers.

 The Visual Merchandising of Big Bazaar does not seem to be as good in

implementation as that of other retail store brands such as lifestyle. So the company

needs to step up their capabilities in VM out of the threshold.

 A schematic of the store markingout different product sections could be helpful at

times.

 Soothing colour in stores makes it perpetual to enter the store and check it, Big Bazaar

needs to work on that.

 Bright colors should be used more in the store as it grabs attention.

  More Graphics for the display at the section of Fancy dresses would make it look

much more attractive.

SCOPE & OTHER SUGGESTIONS

The study of Visual Merchandising should be put at a higher pedestal than where it seems to

be present as of now. There’s a huge scope for Visual Merchandising practices in general,

which can greatly influence customer buying behaviour and increase sales and subsequently,

profits.

A study such as this one can derive greater and more accurate results if done on a macro-

level, wherein the visual aspects of multiple retail stores of the chain are analysed through

opinions of customers belonging in the store’s locality. Through analysis of multiple stores, a

more cohesive set of findings could be made, which would create more patterns of

similarities between services and visual aesthetics in different stores. These set of patterns

can give much deeper insights into the Visual Merchandising practices at Big Bazaar.

Moreover, further studies on this subject can also benefit from observation based research.

This is because people might not give the most appropriate answers with regard to VM in a

mere questionnaire. The reason for this hypothesis in theory, is that Visual Merchandising is

practice which delivers results in terms of an experience, and not a tangible or a measurable

value. Thus in a format of a questionnaire, the respondents would have to report their whole

experience in terms of answer to a limited set of questions, which might not allow them to

express their experience in the mostly holistic way.

Then another fact to be considered is that an experience does not exist in memory for a long

period of time. So, if a customer has to report his/her experience at a store a month ago,

chances are that most of the memories of that time might have already faded, and everything
subsequently reported by the customer might be just be rough perceptions, which could be

easily misinterpreted.

Such possible misinterpretations and errors could be easily avoided by an observation based

research, wherein the behaviour of customers could be tracked right from the premises of the

store itself.
 BIBLIOGRAPHY

Primary Sources

1- Questionnaire made through Google Forms application. (Questionnaire form attached

with appendices)

2- Some of the information about the store experience was obtained through primary

observation of a Big Bazaar store located in Karol Bagh, New Delhi.

Secondary Sources

1- Wikipedia article on Visual Merchandising:

https://en.wikipedia.org/wiki/Visual_merchandising

2- Understanding of the significance of VM:

https://retailacumen.wordpress.com/2010/10/26/why-is-visual-merchandising-

important/

3- Principles of Visual Merchandising:

https://www.thebalance.com/the-5-most-important-elements-of-visual-merchandising-

2890501

4- Other aspects of Visual Merchandising practices in India

https://retail.franchiseindia.com/article/design-and-vm/store-design/The-art-and-

science-of-Visual-Merchandising.a199/

5- Understanding of Retail store layouts

https://www.shopify.com/retail/the-ultimate-guide-to-retail-store-layouts

6- Big Bazaar’s Gen Next platform

https://fashionunited.in/news/retail/big-bazaar-gen-next-is-the-next-big-

thing/2016010812886
 APPENDICES

Questionnaire form:

VISUAL MERCHANDISING: A CASE STUDY OF BIG BAZAAR

A study of Visual Merchandising practices in Big Bazaar, one of the oldest and largest

Hypermarket chain of India

Demographic Information

1. Name _________________________________

2. Gender

 Male

 Female

3. Age

 10-20

 20-30

 30-40

 40-50

 50 & above

4. Occupation

 Employee

 Business

 Home maker

 Student

 Other __________________
5. Income Range

 ₹10-20k

 ₹20-30k

 ₹30-40k

 ₹40-50k

 ₹50k and above

Visual Merchandising and Customer Behaviour

6. How often do you visit Big Bazaar Store?

 More than Once in a week

 Once a week

 Once in a month

 Only on offer days (Big Days, Wednesday Bazaar)

 Very rarely

7. How do you come to know about new product arrivals in the store?

 Through display of the product

 Through offers

 Through Announcements

 By enquiring salesperson

 You search on your own

8. Does the way of product arrangement & display in the store attract you?

 Always

 Mostly
  Sometimes

 Rarely

 Never

9. Do you generally follow the display and layout to find a product?

Strongly Disagree

1 2 3 4 5

Strongly Agree

10. When you enter the store...

 I go straight to the products which I want

 I walk through the store as it leads me

 I do not follow any pattern, i just walk randomly and pick up products

 I seek the help of salesperson to navigate in the store

 Other _______________________

11. While shopping, how do you come to know about the offers for the day in the store?

(Tick only one option which is most relevant)

o Sign Boards

o Promo Areas (Melas, Celebrations)

o Sales people

o Pamphlets

o Announcements in the store

12. On a scale of 1-5, rate the different visual elements of a Big Bazaar store

Exterior: 1 2 3 4 5

Interior Ambience: 1 2 3 4 5

Product Display: 1 2 3 4 5

Product Sorting: 1 2 3 4 5

13. If you bought some products other than what you came to buy, which of the following

factors made you buy more? (Tick as many as possible)

o Attractive display of the product

o Good Product

o Information provided by Salesperson

o When i see a good deal, I tend to buy more than that I intended to buy

o No specific reason, i just bought because I liked the product

o I did not buy anything out of list

14. Have you ever experienced instant/unplanned buying in store?

 Yes

 No

15. If "yes", which factor influenced you more to take instant/unplanned buying decision?

 Placing of the product

 Influence of Promotional Signage

 Excitement in trying a new product

 Influence of Mannequin Display

16. What do you feel about the product arrangement in the store?

 Excellent

 Very good

 Good

 Average

 Poor

17. Visual display/Presentation of products influences my buying decision in the store.

Strongly Disagree

1 2 3 4 5

Strongly Agree

18. How do you feel that the following factors influence your buying decisions in a store?

Rate the following from 1-5.

Locating products through signs. Graphics, etc. :

1 2 3 4 5

Lighting:

1 2 3 4 5

Music:

1 2 3 4 5

Fragrance:

1 2 3 4 5
Colours:

1 2 3 4 5

19. On the whole how was your shopping experience with Big Bazaar?

 Highly Satisfied

 Satisfied

 Neither Satisfied nor Dissatisfied

 Dissatisfied

 Highly Dissatisfied

20. Any suggestions to improve the display and visuals in the store

_____________________________________________________________________