The Importance of Visual Merchandising on Customer Loyalty, a Study Conducted in Kolkata

Abstract

The modern marketplace is a battlefield for retailers. For sustaining in the thick of competition, one-time shopping behaviour must be changed to repeated shopping behaviour, therefore helping the retailer earn loyalty and goodwill in the long-run. This paper explores the importance of visual merchandising elements on two shopper types-first-time shoppers/repeat shoppers of the recent past and lifelong loyal shoppers-in terms of retailer loyalty. Multi-factorial ANOVA proves that an interaction exists between shopper type and visual merchandising elements. Posteriori Tests reveals that shoppers give maximum importance to Sensorial Elements (Set 3)-music, aroma, merchandise arrangement, aisle space, lighting and cleanliness; followed by Set 2 elements-flooring and in-store signage; and finally Set 1 elements-wall colour/texture and store exterior. Set 3 elements hold maximum importance to all shoppers however; first-time/repeat shoppers of the recent past consider Set 1 elements to be more important than Set 2 elements less important unlike lifelong loyalists.