Impact of Visual Merchandising on Consumer Perception of Electronics Products and Usage of Technology

Indian retail market is going through a turbulent time with the growth of online retail which has reduced the footfalls in the physical outlets/stores. Sales of electronics goods - specifically mobile phones, tablets, laptops, etc., are increasing online and giving fierce competition to brick and mortar retail stores. In such a scenario visual merchandising combined with sales promotion schemes may become one of the important tools to attract consumers into these stores. In India, the effective utilization of visual merchandising as tools for promoting electronics goods’ sale has been not so effective. Most of the retailers do not focus on advanced product display techniques. This research is focused on finding the impact of visual merchandising on consumer buying behavior for electronics goods. It also suggests utilization of technology to enhance the effectiveness of visual display. Eight independent variables namely window display, store front, shelf display, wall mount display, counter top display, electronic center rack, signages/graphics and store atmosphere, have been studied to trace their impact on the dependent variable viz. the consumer perception regarding the store image for visual merchandising. From the analysis it was found that customers have unique and different perception for visual merchandising of different stores. Atmospherics of one outlet and shelf display of another outlet have strong perception or image, rest variables do not have strong positioning in customers’ mind regarding visual merchandising. Retailers, therefore, must use better visual display techniques to lure customers into their stores. The application of usual tools of visual merchandising needs to be enhanced along with the usage of latest technology such as interactive screens and digital LED/LCD screens which not only display store’s products but also highlight the product features to give better customer experience and ease to understand the technical aspects of the products resulting in greater number of footfalls and enhanced sales of the stores